Did you know that owners of real property in New York City have the annual right to contest the assessed value of their property?
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 also known as a “Certiorari” or “Tax Cert,” is not filed by March 1, (before extension), you will lose your right to challenge the assessment for the upcoming tax year.
Every year on January 15th, the Tax Commission of the City of New York releases new real estate property assessments. The assessment establishes the market value of the real property, 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. The property owner may challenge the results of the assessment through the filing of a Real Estate Tax Certiorari.
One of the most common Certiorari filings is for rent producing properties, which must be filed by March 1st, annually (before extension), and requires the 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 auditing standards (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 Accountants’ Certification, Form TC309, which must be signed by an independent certified public accountant who has conducted an appropriate audit of the applicant’s records under the generally accepted auditing standards (GAAS).
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 Tax Cert 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 and leasing companies. The real estate team at MBAF are experts at preparing a real estate tax Certiorari. In fact, we 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.