Property Tax Appeal Process in New York City – Part I
The foundation of a successful appeal proceeding lies in accurate record keeping throughout the reporting period. Hence, the first step in the appeal process is to accumulate as much relevant information and evidence as possible.
Owners of income-producing properties must keep track of their monthly rental revenue, as well as their fixed and variable costs in running the building (i.e., operating expenses). Vacancies should be tracked throughout the year, as any circumstances that caused the taxpayer to lose revenue must be documented and explained at the hearing.
Even though tentative assessed values are published on or around January 15th, the process of preparing for the appeal should start earlier. To properly deal with each of the anticipated complexities, a tax certiorari professional must gather information relevant for appeal before the end of the year. Based on review of the data received early in the process, the taxpayer might receive one or more supplemental requests for information or documentation. Tax appeal applications must be fully completed, properly executed by an authorized signatory and submitted to the Tax Commission prior to March 1st.
Note that the assessed value might fluctuate during the Change by Notice Period, which is between January 15th and May 25th. Within this timeframe, Finance is allowed to make corrections to the assessment roll as a result of the taxpayer’s request or pursuant to the inspection of the property, among other triggers. Most properties whose assessment changes during this period will receive their Revised Notices of Property Value before their hearing date at the Tax Commission.
While there may be exceptions, the Tax Commission generally schedules hearings for specific property types as follows.
Note: Dollar amounts represent Actual Assessed Value.
|High Value Properties ($75,000,000+)||Early April|
|Tax Class One (1), Non-Condo, >$1,000,000
Tax Class Two (2)
Tax Class Four (4),$8,000,000 – $74,999,999
|May – July|
|Tax Class Four (4), $0 – $8,000,000||July – November|