7 Steps to your appeal

Navigating the complexities of New York State commercial real estate tax assessments can be daunting, especially for properties with high vacancy rates. To successfully challenge your tax assessment, you’ll need a meticulous approach backed by solid evidence. Here’s your step-by-step guide:

1. Decipher Your Property Assessment

• Get to Know the Numbers: Every year, the NYC Department of Finance or your local assessor determines property values based on market value, income potential, vacancy rates, and more.
• Spot Inaccuracies: Semi-vacant properties often suffer from outdated rent assumptions. This can lead to inflated assessments that don’t reflect current market conditions.

2. Collect Compelling Documentation

To make your case, gather key evidence:

• Income and Expense Statements: Submit accurate Real Property Income and Expense (RPIE) statements. Missed filings can disqualify appeals.
• Proof of Vacancy: Use lease data and broker communications to document current vacancies.
• Appraisals and Comparisons: Professional appraisals and recent sales of similar properties are crucial.
• Market Analysis: Show vacancy and rental trends relevant to your property.

3. File an Administrative Grievance

• Initiate the Appeal: Outside NYC and Nassau County, use Form RP-524; in NYC, file with the Tax Commission using “TC” forms.
• Mind the Deadlines: April 1 in NYC for commercial properties, and often the fourth Tuesday in May elsewhere—but confirm locally.
• Consider Professional Help: While filing is free and doesn’t require a lawyer, consulting experts can boost your chances.

4. Attend a Board of Assessment Review (BAR) Hearing

• Present Your Evidence: Request a hearing to argue your case. Focus on showing how the assessment misrepresents your property’s reality.
• Next Steps: If the BAR decision is unsatisfactory, you can escalate the matter.

5. Explore Judicial Review: Tax Certiorari

• If You Need More: File a judicial appeal in the New York State Supreme Court under Article 7. This usually involves an attorney.
• Time-Sensitive: Act within 30 days of the final assessment roll publication.
• Ready for Investment: Professional appraisals and legal counsel can be costly but are often necessary.

6. Special Considerations for Semi-Vacant Spaces

• Show the Gap: Demonstrate how assessment assumptions deviate from your property’s real performance.
• Capitalize on Improvements: Programs like the Industrial and Commercial Abatement Program (ICAP) can offer additional relief.

7. Strategic Insights and Best Practices

• Preemptive Engagement: Informally discuss your assessment with your assessor—it might lead to beneficial adjustments.
• Stay Ahead: Submit forms early to uphold your appeal rights.
• Seek Expertise: A tax certiorari attorney and a knowledgeable CPA can help you navigate local regulations effectively.

Summary Table: Steps to Appeal NYS Commercial Property Tax

Step	Action	Documentation Required	Key Deadline
Review Assessment	Analyze assessment; gather income/vacancy data and market comparables	RPIE statement, appraisals, leases	Prior to grievance filing
File Grievance	Submit administrative appeal (e.g., NYC Tax Commission appeal or RP-524)	Grievance form, supporting evidence	April 1 (NYC commercial)
BAR Hearing	Attend hearing (optional), present evidence	Same as above	Shortly after filing
Judicial Review	File Article 7 action (tax certiorari) in State Supreme Court	Full supporting file, legal counsel	30 days post final assessment
Explore Abatements	Consider ICAP or other programs	Application forms, improvement plan	Program dependent

Note: Always verify timelines, forms, and procedures with your local assessor or tax office.

By substantiating the impact of semi-vacancy and highlighting discrepancies in current assessments, you enhance your prospects for a tax reduction. Professional guidance is advisable at each stage for commercial properties.

For further information, you can explore additional resources and official links provided.