Every year on or around January 15th, the Tax Commission of the City of New York releases new real estate tax assessments. The assessment establishes the market value of the real property per the City of New York’s records, along with the actual assessed value, and, most importantly for taxation purposes, the value based upon which the real property will be taxed in the next fiscal year.
From January 15 through March 1, an application for a correction of the assessed value may be filed with the Tax Commission of the City of New York. If this tax appeal, which is known as a “Certiorari” or “Tax Cert,” is not filed by March 1, (without an extension request), you will lose your right to challenge the assessment for the upcoming tax year. This can be extended to March 22, by attaching Form TC 150 to the TC 201 filing.
Certiorari appeals are commonly filed for rent producing properties. This filing requires submission of Form TC-201, the Income and Expense Schedule for Rent Producing Property (“Income and Expense Schedule”).
The Certiorari is presented based on the rules and regulations established by the Tax Commission of the City of New York and is not intended to be a complete presentation of a property’s operations under generally accepted accounting principles (GAAP). If the actual assessment is $1,000,000 or more and the property has income exceeding $100,000, TC201 must be accompanied by an Accountant’s Certification, Form TC309, which must be signed by an independent certified public accountant who has conducted an appropriate audit of the applicant’s records.
This is why, in order to ensure a successful challenge, it is imperative that real property owners in New York City who wish to file a Certiorari appeal do so with the help of a knowledgeable accountant.
How MBAF Can Help
For decades, MBAF has successfully served clients in the real estate industry such as developers, property owners, management and leasing companies. The real estate professionals at MBAF have extensive experience with real estate tax certiorari filings and have a practice area specializing in providing this service. New York City property taxes are some of the highest in the nation. While a successful challenge of your New York City real property tax assessment cannot be guaranteed, our real estate auditors have a track record of helping New York City property owners realize the potential advantages of filing a Certiorari for their respective properties.
Taking advantage of your right to contest the value of real property, can be complex. If you would like to benefit from our expertise in these areas, or if you have further questions on this Advisory, do not hesitate to contact our Real Estate specialists, or call us at 1-800-239-1474.