Each January the city mails New York City property owners a Notice of Property Value (NOPV). The notice shows the information that the city has about each property, including building size, lot size, tax class, construction year, etc., as well as the city’s estimate of the property’s market value. The notice explains how your property’s estimated market value is established and how that market value determines your property tax.

Estimating Market Value

The city is required by law to estimate the value of your property as of January 5th each year. The city uses one of three approaches to value your property: sales, cost, or income. This value is the basis for the taxes you will pay in July.

Sales: The city reviews prices of similar properties that sold in the last three years to estimate the market value for your property. This method is used most often to value small residential properties (e.g., 1-, 2-, and 3-family homes and vacant land).

Income: The city estimates your property value based on the income you get for renting your property. The income is based on information you provide about your property, or market data. This approach is generally used for income-producing properties, such as office and apartment buildings. The city either divide the net income by a capitalization rate (an estimated rate of return) or multiply the gross income by a multiplier.

Cost: The city estimates the land value and the cost of constructing, reproducing or replacing your building. This method is used for new construction and renovations; specialty properties, such as churches, museum and utilities.

Cooperatives and Condominiums: State law requires the city to value cooperative and residential condominium buildings as if they were rental apartment buildings. City’s value is not based on the sales price of individual co-op or condo units but on an estimate of the rent that would be charged for the units if they were rental apartments.

Exemption/Abetment

There are many different types of programs owners can use to reduce their annual payments. Some examples are Exemptions and Abatements. There are Exemptions and Abatements available for Individual, Construction and development properties, Institutional & governmental (non-for profit, industrial development agency) and more.

Exemptions provide tax relief by reducing a property’s taxable assessed value to which the tax rate is applied. Abatement also reduce the amount of tax due by giving a dollar credit against the tax liability.

Appeal with the Tax Commission

The Tax Commission is the City of New York’s forum for independent administrative review of real property tax assessments set by the Department of Finance.

In accordance with New York State and local law, the Tax Commission reviews and determines annual applications for correction of assessment filed by owners who claim are incorrectly assessed or improperly denied an exemption from real property tax.

There are four real property tax assessment-related claims subject to review and corrective action by the Tax Commission: 1. Excessive assessment; 2. Misclassification; 3. Unequal assessment; and 4. Unlawful assessment. The claims are summarized, as follows: Excessiveness covers claims that an assessment cap has been exceeded or a partial exemption claim. Inequality compares your assessment to the assessments of all other real property in the same tax class. Unlawfulness covers claims for complete exemption from taxation, that the property is entirely outside the city limits, or that the City lacks authority to assess the property. Misclassification is a claim that the assessment roll designates an incorrect tax class for the property.

The Tax Commission comprises a president and six Commissioners appointed by the Mayor, with advice and consent of the City Council, to six-year terms. The President, as the head of the agency, serves full-time; the six Commissioners serve part-time. Each member of the Commission must have at least three years of business experience in real estate or real estate law. The Commission must include at least one resident of each borough.

Tax Commission’s administrative determinations are subject to de novo judicial review.

As the rulings regarding  the issue of property tax is extremely complex with each building offering unique characteristics- the municipality frequently charge tax rates above the amount legally due. In order to succeed in significantly reducing the payments, help should be sought from a team of experts on the subject – lawyers, appraisers, surveyors, real estate specialists.

We combine with experts from some disciplines, we are at your service to appeal against the amount of property tax due to accompany you through all stages of the process:from the preliminary assessment through to the receipt of the rebate and reduction on property tax liability on a “win only” basis. We don’t succeed – you don’t pay!

A formal tax grievance petition must be filed requesting the relief sought and the merits of your case must be presented.

There is no downside to using our service to grieve your property tax assessment. You have nothing to lose and everything to gain;

No fee is charged by our firm unless we obtain a reduction in your assessment.

There is no risk to you. Your tax assessment can only be reduced as a result of this filing.

No court appearances- we will make any and all appearances on your behalf.

As a reminder to our New York City clients, tentative property assessments for 2008, will be published mid-January 2008 by the New York City, Department of Finance. The tax commission filing deadline to challenge a tentative assessments is march 1, 2008