New York City Property Tax Update Archive
Updated September 2018
Expanding the Workforce in Construction: Inclusive Initiatives for Women and Minorities Proves Critical for Ever‐Evolving NYC Construction Industry
New York City represents the best of real estate development on a global spectrum. From the record-breaking economic sales, to record-breaking building heights, the complexity and success of this industry rests on the shoulders of its committed, dynamic, knowledgeable, and diverse workforce.
This workforce is made up of many roles – developers, architects, legal counsel, and construction personnel. Take a stroll through any New York City street and you will undoubtedly witness a construction site underway. The hammering, demolition, concrete mixing, safety signaling, and drilling make up the musical medleys that fill the every-day tunes this magical City is best known for.
For that reason, it’s imperative that the construction workforce advance and grow. One initiative that has gained momentum and added a dynamic impact to the construction world is the growing rate of women-owned construction firms and women construction workers on-site. The construction world has been predominately male-oriented, but the inclusion of women in the workforce has only strengthened the industry and given it a greater edge.
Marcus & Pollack LLP, a leading real estate tax firm in New York City, has recognized this trend. Recently, Marcus & Pollack created a new department specifically tailored to assist women and minority owned business in the bidding and contract award process on major construction projects throughout New York City. Marcus & Pollack LLP works hand-in-hand with leading developers to include women owned business on their job-sites at every level – from general contractors and construction managers to all lower-tiered trades.
Marcus & Pollack LLP can be the catalyst in bringing significant numbers of women and minority owned businesses and construction labor into the bidding and contract award process. Marcus& Pollack LLP’s involvement and representation of many of the owners and developers involved in new construction projects enables the initiative to be established and pursued at the very early stages of planning and project development.
As advisors in property tax aspects and tax incentive programs, Marcus & Pollack LLP advocates the inclusion of minority and women owned firms on construction sites by counseling clients to include at least three minority and/or women owned companies in every request for proposal or construction labor throughout the project. The initiative has been widely accepted and implemented.
Further, women and minority owned firms and construction workers are also given access to Marcus & Pollack’s database of on-going, active construction sites looking to hire. By matching these minority and women owned firms or construction labor to projects currently underway throughout New York City, the overall construction schedule is helped to steadily progress because construction needs are being met by an able, capable, and dynamic workforce.
For more information, please contact Joel Marcus or Kristine Loffredo at This email address is being protected from spambots. You need JavaScript enabled to view it. or (212) 490-2900.
Joel R. Marcus
Marcus & Pollack LLP
American Property Tax Counsel (APTC)
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)
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
- 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.
- 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.
- Be prepared to file CCU's (Certificates of Continuing Use) for all commercial exemptions, ICIP and ICAP in December.
- 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.
