Risk of losing $2M on tax flub: stringer

THE CITY RISKS losing out on $2 million in property tax money because of mistakes by the Finance Department in classifying buildings, an audit by city Controller Scott Stringer charges.

The audit found that 197 buildings in Brooklyn were wrongly classified as residential when most of their space was used for commercial purposes — so most of them should have been taxed at a higher rate.

If the buildings aren’t reclassified, the city will miss out on $2.09 million in potential tax earnings over five years, Stringer claims.

“Property owners were incorrectly taxed at a lower rate. It’s time for the (Finance Department) to correct the tax rolls, collect these funds going forward and improve how they do their jobs,” Stringer said.

In a response to auditors, the Finance Department said it inspected the buildings and found that the categories for 140 of the buildings were wrong, adding that the classifications were being changed.

However, the department called Stringer’s criticism of the agency an “overgeneralization.”