Tax Year 2020/2021 tentative property valuation assessments for various New York City (“NYC”) properties were updated by the NYC Department of Finance on January 15, 2020. With overall property valuation assessments often increasing annually, landlords are looking to significantly reduce related increases to their NYC property taxes, especially for expected lost revenues attributed to recently implemented NYC rent regulations affecting many residential properties starting in 2019.
Real estate certiorari is a legal process by which NYC property owners of rent-producing properties can request a review to challenge their property value assessments used to determine property taxes due to NYC. The certiorari process provides for an opportunity to lower property taxes through the filing of an operating income and expense form with the Tax Commission of the City of New York (“Tax Commission”), usually done through the property owner’s certiorari attorney. TC201, Income and Expense Schedule For Rent Producing Properties is the most common form to do so.
Form TC201 must be filed by March 2, 2020 for properties assessed up to $750,000. For properties assessed at $750,000 or more, Form TC201 must be filed by March 24, 2020. For a rent producing property that has a tentative actual assessed valuation of $5,000,000 or more and income greater than $100,000, Form TC201 filing must be accompanied by Form TC309. Form TC309 is an accountant’s certification completed by an independent certified public accountant who will perform an audit of the information provided by the property owner reported on Form TC201.
The Tax Commission has made available the updated form TC201 and TC309 for the reporting of 2019 operating income and expenses applicable for the coming 2020/2021 tax year. The file deadline is near! Citrin Cooperman’s Real Estate Practice advisors can work with you and your certiorari attorney to help guide you through the certiorari process.