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New York City Property Tax Updates

Updated June 2015

Assessing Generators in New York City

The Department of Finance, after years of not assessing generators owned by tenants or used by media companies is now beginning to assess them. Questionnaires have been sent out to owners and to tenants about generators. Owners and tenants should check to see if they have received anything in the mail, as the Department of Finance has been sending them to the last known address they have on file, which is not always accurate or adequate notification. Determine if you have an emergency power generator which is being separately assessed, and contact your attorney. These assessments can carry huge penalties and interest if not paid even if they are sent improperly, and can be a threat.

Joel R. Marcus, Esq.
Marcus & Pollack, LLP
American Property Tax Counsel (APTC)

New York City Property Tax Update Archive

Updated March 2015

New Assessments Increase for Hotels and Trokphy Buildings for 2015/16

New Assessments released for the 2015/16 Tax Year show very significant increases over past year’s values.

Overall, residential properties showed a rise of 11% compared to last year’s increase of only 6.6%, while Commercial properties rose almost 12%. Specifically, Trophy Buildings were raised 31% in market value, and Hotels experienced an almost 65% jump in assessed value.

The foregoing assessment changes are driven by the strong leasing and sales market in New York City. In addition the Assessors have quick access to all the operating statements of most properties and are not shy about factoring in these massive changes.

The tax roll’s release begins the process under which owners and developers can initiate challenges to their property tax assessments. Owners must challenge their assessments by filing applications and supporting documentation to the New York City Tax Commission.

Joel R. Marcus, Esq.
Marcus & Pollack, LLP
American Property Tax Counsel (APTC)

 

Updated December 2014

New York City Tax Appeal Planning

The NYC Assessor is planning major changes to its valuation of property including lower capitalization rates. January 15, 2015, New York City releases its new assessment roll. Please note tax commission appeals may be made up until March 1st. Proper preparations in advance will help the success of your property’s tax appeal. Take photos of any condition that could negatively affect the valuation of the property (Tax valuation date is January 5th); e.g.: fire or other damage to structure; roof collapse; cracks in foundation or facade. Send draft of year end financials to your property tax attorney for their review and comment together with copies of new deals, lease abstracts, or term sheets. Speak or meet with your property tax attorney to review all relevant facts, conditions and future trends; e.g.: departure and replacement of a major tenant, major capital improvements. Review and confirm all upcoming filing deadlines and requirements for the 2015 calendar year.

Joel R. Marcus, Esq.
Marcus & Pollack, LLP
American Property Tax Counsel (APTC)

 

Updated September 2012

A few year-end items that taxpayers need to consider in NYC

  1. Make sure you filed your RPIE (income and expense reporting forms) with the Department of Finance on line this year. The deadline was September 3rd, but if not filed, monetary penalties can be avoided or negated if a prompt filing is made now. Many property owners found the online filing process difficult and DOF admitted that its system crashed several times this past month including on the last day for filing.
  2. A Petition in Supreme Court must be filed no later than October 24th this year or the claim will be abandoned and cannot be reconsidered at a later time.
  3. Be prepared to file CCU's (Certificates of Continuing Use) for all commercial exemptions, ICIP and ICAP in December.
  4. Not-for Profit and Religious entities also have to renew their tax exemption annually. Forms will be sent to them in December.

Joel Marcus
Marcus & Pollack, LLP
American Property Tax Counsel (APTC)

 

Updated December 2012

Assessment for 2012/13 has been completed

New York City has completed its final assessment roll for 2012/13 and tax bills have been issued. However, the Tax Commission has completed only one half of its review of the challenge of assessments. Any reductions that take place later this year will be reflected in refunds rather than in revised tax bills. Property owners need to file the annual RPIE (income and expense statements) electronically by September 1st or face both a monetary penalty and a denial of a review of next year's assessment. Any assessment that was challenged this year and did not receive a settlement must file a petition in State Supreme Court by October 24 to preserve the assessment challenge and allow for additional settlement review. This year tax assessments were raised significantly causing widespread dissatisfaction from most owners.

 

Updated December 2010

Class and Type of Property Determine Assessment Methodology in NYC  

New York City utilizes a sales based method to determine the fair Market value of 1, 2 & 3 family homes, and then assesses them using an equalization ratio of 6% of FMV.  This assessment is further limited by a cap on increases of no more than 5% a year or 20% for any five-year period.    Other residential properties, cooperatives and condominiums and rental apartments are valued using a gross income multiplier formula (from 2% to 5% of gross income) and the assessment is 45% of that figure.  For residences with more than 3 or less than 10 units, increases are capped at no greater than 8% a year or no more than 30% in any five year period.  Other residential properties have no caps but with increases phased in over a five-year period.  Utility properties are assessed at 45% of fair market value using a cost approach.  All other non residential properties, commercial, retail, office, industrial, hotel or theatre are assessed on a capitalization of net income and applying a 45% ratio.  Increases are phased in on a five-year period.

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