In many if not most areas in the US assessed value and market value are two different things. The system in NYC (for homes not condos) is that the assessed value is 6% of market value. While in other place like the entire state of California (at least at time of purchase) assessed value is 100% of the market value - a more straightforward method used in some states. The percentage is know as the "assessment ratio" and varies by state and even within states such as by city or county.
However the tax rates are much higher areas using the 6% method versus the 100% method. For example in NYC the tax rate is 19.157% while in San Francisco is 1.1743%. If you do the math the tax rate on market value is about the same. 6% * 19.157% = 1.149% in NYC versus 1.1743% in SF. In most places it is around 1% but can be over 2% in place like New Jersey, Illinois or upstate New York which unlike NYC relies more on property taxes.
None of this says anything about the NYC system for condos (class 2) that the article talks about but is often a source of confusion when comparing areas that use different systems.
This was very confusing to me when I lived in New York. The property tax rate is terrifying (19 percent annually???), but then you realize that the basis for each property is reduced by a fudge factor such that the effective rate is in the same range that it is in other places.
I suspect that the reason that they do this is to stop people from hassling the city constantly about their assessment. In places like MA, where they make an honest attempt to keep assessments close to 1:1 on value (mine changed annually in the time that I owned the house, often going DOWN -- this was 2007-2010), people are constantly appealing their valuations.
However the tax rates are much higher areas using the 6% method versus the 100% method. For example in NYC the tax rate is 19.157% while in San Francisco is 1.1743%. If you do the math the tax rate on market value is about the same. 6% * 19.157% = 1.149% in NYC versus 1.1743% in SF. In most places it is around 1% but can be over 2% in place like New Jersey, Illinois or upstate New York which unlike NYC relies more on property taxes.
None of this says anything about the NYC system for condos (class 2) that the article talks about but is often a source of confusion when comparing areas that use different systems.
http://www1.nyc.gov/assets/finance/downloads/pdf/brochures/c...
http://www.socketsite.com/archives/2014/09/san-francisco-pro...
EDIT: Here's a good recent review of residential real estate taxes across the US (290kb pdf):
http://www.brookings.edu/~/media/research/files/papers/2013/...