At this point, most of us have received our property tax assessments from the Office of Tax and Revenue (OTR).  Let's face it, no way you slice it, not very many people enjoy paying taxes. For some though, there will be increases that may catch you by surprise and for others there may be slight decreases that also may come as a surprise.

We’ve received several phone calls and emails with one question – Why?

For those with a decrease, it is due to two factors – falling assessments and the Council’s cap of a yearly 10% increase in real property’s taxable assessment.

OTR has informed us that this year assessments are down an average of 5% on single family homes and more than 10% on commercial properties. With a lower assessment comes a lower tax bill. For those whose assessment has risen, the legislation enacted by the Council at the height of the sales boom that restricts real property taxation to no more than a 10% increase in the property’s taxable assessment each year, will afford some residents slightly lower real property taxes. But not all residential properties will see a decrease, and those that do, may only see a slight decrease.

For those with an increase, the answer requires a bit more information.

Many homes have typically enjoyed low tax bills over the last many years, and this year’s increase may be dramatic. Generally the less you have paid in the past, the more striking the increase will feel to you. This is due to a provision in the Mayor’s FY2010 budget that created a 40% floor on all residential property taxes.

With this change, homeowners who have historically paid on only a smaller percentage of the assessed value of their homes -- enjoying lower than normal tax bills for many years -- will now be required to pay taxes on at least 40% of the value of their homes.  For example, if a homeowner last year only paid on 15% of their assessed value, their tax bill this year will represent a sharp increase to what they paid last year, now at 40% of the value of their properties.  By comparison, most homeowners will continue to pay taxes on 60% of the assessed value as they always have. So even with the increase to a 40% floor, those taxes will be lower than the general population. 

Most of us, nonetheless, will continue to feel the pinch as the city continues to struggle with financial decisions in these tough economic times and faces a several hundred million dollar shortfall in the budget.

Our office is happy to provide more information and details, as well as help work with the Office of Tax and Revenue if you would like to explore one of the city’s several tax deferral programs.  Please call, 724-8072, or email me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , and I will be happy to work with you.