Taxing Times: NYC Property Tax Hike Coming

NEW YORK (CBS 2) -- There was no mercy Thursday for New York City taxpayers.

Bus and subway fares are going up for the third year in a row. Water rates have gone up every year for the past 16 years.

And now comes word of yet another property tax hike. Yikes.

"Sock it to me. Sock it to me. Sock it to me. Sock it to me" was a long running joke on the late 1960's hit "Laugh-In" but taxpayers say there's nothing about the latest attempt by New York City to sock it to them -- a new property tax hike.

"With the raises they're kicking us out from New York. That's why they try to do," Bayside resident Ed Simicich said.

"I have known some friends that, you know, because they cannot pay their bills, their houses been taken away," another resident said.

"I think it's going to hurt my retirement money. It's going to be very hurtful," added Larry Segota.

"Listen, we elect these guys. They promise the moon. Soon as they get into office they go to Bermuda and forget about us and it's business a usual. We get (expletive) in plain English," said Roy Morringello.

The latest case of the city reaching into your depleted pocketbooks is being brought to you by the City Council. It's expected to raise $500 million, by hiking property taxes an average of $173 for one- and two-family homes and co-ops and condos.

For example:

* Taxes on a $500,000 home will rise 4.9 percent to $3,692

* Taxes on a $425,000 co-op will jump 3.5 percent to $5,103

Councilman Daniel Halloran of Whitestone was one of the few who voted against the property tax increase. He said a tax hike at a time when home values are falling and sales are depressed is a recipe for disaster.

"Homeowners in the United States, 1 in 10 of them are in foreclosure or in a pre-foreclosure posture – 1 in 10. It is unbelievable that the government would think at this time it would be a good idea to raise anybody's taxes," Halloran said.

The new tax bills should arrive in your mailboxes sometime next month. You'll have to pay up in January.

In addition to hiking the tax rate, the city Finance Department said it has collected more from homeowners every year for the past five years by increasing the assessed value of their property.