NEW YORK CITY-New York City has the most byzantine system of taxing real estate, which has become a major source of increased expenses for owners of commercial real estate and their tenants. If she were an owner of real estate in New York City, Alice would not have needed to go to Wonderland.

In New York City, there are four classes of property that get taxed: class one consists of one, two and three-family homes; class two consists of multifamily housing; class three includes real estate belonging to utility corporations and special franchise properties; and class four is all other commercial real estate. The property tax the members of each class pay is based on two factors; the tax rate, which the City sets each June, and the property’s assessed valuation, which the City announces every January. The Tax Rate for 2012/13 (i.e., for the fiscal year of July 1, 2012 through June 30, 2013) is as follows: class one:18.569%; class 2:13.181%; class three: 12.477%; and, class four: 10.288%.

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