Form Tc 600 - How To Appeal A Tentative Assessment - Ney York City Tax Commission printable pdf download

TC 600

(1/98)

THE TAX COM MIS SION OF THE CITY OF NEW YORK

One Cen tre Street, Room 929, New York, NY 10007

HOW TO AP PEAL A TEN TA TIVE AS SESS MENT

n nual as sess ment. A real prop erty tax as sess ment is a

As sess ment ra tio. The as sess ment ra tio is an es ti mate of the

de ter mi na tion of a prop er ty’s tax class, as sessed

City- wide av er age per cent age of mar ket value at which

value and eli gi bil ity for a full or par tial ex emp tion from

prop erty in the same tax class is as sessed. The Fi nance

tax. Your tax bill for the pe riod July 1 - June 30 is

De part ment’s most re cently avail able es ti mate of the

based on your prop er ty’s as sess ment and the tax rate

as sess ment ra tio for class one prop erty is 8%. The Fi -

for your prop er ty’s tax class. The City Coun cil sets

nance De part ment’s es ti mate of the as sess ment ra tio

the tax rates in June as part of the budget pro cess.

for class two and four prop er ties is 45%.

The Ci ty’s De part ment of Fi nance as sesses prop erty

Lim its on an nual as sess ment in creases. Prop er ties

every year and pub lishes a ten ta tive as sess ment roll

in class one are sub ject to a 6% an nual cap and a 20%

no later than Janu ary 18. The new as sess ment is usu -

five year cap. Class two prop er ties des ig nated on the

ally dif fer ent from last year’s as sess ment. You may in -

roll as be ing in the 2A/2B/2C sub class (up to ten units)

spect the roll at the Fi nance De part ment’s bor ough

are sub ject to an 8% an nual cap and a 30% five year cap.

as sess ment of fice where the prop erty is lo cated.

Other class two and class four prop er ties have tran si tion as -

sess ments which phase in in creases and de creases in the ac tual as -

As sess ment no tice. The De part ment of Fi nance mails a no tice of the

sess ment over five years. The lim its do not ap ply to in creases due to

new as sess ment to the ad dress reg is tered for re ceipt of tax bills or, if

physi cal al tera tions or ex pi ra tion of ex emp tions.

the bills go to a bank or mort gage com pany, to the prop erty ad dress.

Fail ure to re ceive a no tice by mail does not ex tend the time to ap peal.

De part ment of Fi nance es ti mate of mar ket value. As part of the an -

If you do not re ceive a no tice by mid Feb ru ary, call the bor ough as -

nual pro cess of as sess ing all real prop erty, the Fi nance De part ment

sess ment of fice and ask for your prop er ty’s ten ta tive as sess ment. The

makes an es ti mate of each par cel’s mar ket value, which ap pears on the

of fices are listed on the last page of this pam phlet.

as sess ment no tice and roll. If the prop erty is in a cate gory where the

ac tual as sessed value is not sub ject to an nual lim its on in creases (class

Ap peal ing the ten ta tive as sess ment. You may re quest re view by the

two prop er ties with more than ten units and classes three and four), the

Tax Com mis sion by fil ing an ap pli ca tion for cor rec tion. The Tax

ten ta tive ac tual as sess ment will be based di rectly on the Fi nance De -

Com mis sion is an in de pend ent agency; it does not su per vise the as ses -

part ment’s mar ket value es ti mate and class as sess ment ra tio. In this

sors and has no part in set ting the ten ta tive as sess ment. Most of ten the

case, if you dis agree with the mar ket value es ti mate, you will also dis -

Tax Com mis sion re views the ac tual as sessed value, but it can re view

agree with the as sess ment. But this is not true for resi den tial prop er -

any as pect of the as sess ment which af fects the tax pay able, in clud ing

ties with ten or fewer units in classes one and two. If your prop erty is

clas si fi ca tion and ex emp tion is sues.

in this cate gory, the Fi nance De part ment’s es ti mate of mar ket value

has no di rect re la tion to the as sess ment or tax pay able. The Tax Com -

Par cels in eli gi ble for re view. If the prop erty is income- producing,

mis sion re views only the as sess ment it self; it can not or der a change in

the owner must sup ply the De part ment of Fi nance with an in come and

the Fi nance De part ment’s mar ket value es ti mate.

ex pense state ment on form RPIE. Prop er ties as sessed for $40,000 or

less and some other prop er ties are ex cluded. The Tax Com mis sion is

As sess ments of other prop er ties. You may wish to com pare the Fi -

not per mit ted to re view an as sess ment if the owner was re quired to file

nance De part ment’s mar ket value es ti mate for your prop erty with that

form RPIE with the De part ment of Fi nance but did not file it on time.

of oth ers in your neigh bor hood. But bear in mind that all of the es ti -

mates may be too high or too low in com pari son with prop er ties in

Tax class. State law di vides all prop erty into four classes for pur poses

other parts of the City. Other as sess ments are not proof of a prop er ty’s

of taxa tion. Class one in cludes one, two and three fam ily homes, most

mar ket value or proof of une qual as sess ment. The class as sess ment

residentially- zoned va cant land, con do mini ums of up to three sto ries

ra tio is an es ti mate of the av er age re la tion ship be tween as sessed value

and some other prop er ties. Class two con sists of all resi den tial prop -

and mar ket value for all prop er ties in the same tax class.

erty not in class one . Most non resi den tial prop erty is in class four.

Util ity com pany equip ment is in class three. Each prop erty has a ten -

Should you ap peal? Es ti mate your prop er ty’s mar ket value. Mul ti -

ta tive tax class des ig na tion which ap pears on the Fi nance De part -

ply by the as sess ment ra tio for your prop er ty’s tax class. If the re sult

ment’s as sess ment no tice and the as sess ment roll.

is less than your prop er ty’s ac tual as sessed value, you may wish to file

an ap pli ca tion for cor rec tion with the Tax Com mis sion. Also ap peal if

Ac tual as sessed value. A prop er ty’s ac tual as sessed value is based on

you be lieve the prop er ty’s ten ta tive tax class des ig na tion is in cor rect

an es ti mate of the prop er ty’s mar ket value mul ti plied by a class as -

or if you dis pute the Fi nance De part ment’s de ter mi na tion of your

sess ment ra tio.

prop er ty’s eli gi bil ity for full or par tial tax ex emp tion. The fol low ing

Mar ket value. The law de fines value as the price for which a prop erty

are, in them selves, not rea sons to ap peal: The as sess ment was in -

would or di nar ily sell on the open mar ket, based on its con di tion and

creased or de creased from last year — A neigh bor ing prop erty pays

value as of Janu ary 5 of this year. Your prop erty has a mar ket value

less tax — The Fi nance De part ment’s es ti mate of mar ket value or de -

even if you have no plans to sell it. Mar ket value es ti mates are based

scrip tion of the prop erty are in ac cu rate.

on re cent sales, rent and op er at ing ex penses, con struc tion costs, or a

Ex am ple: Three very simi lar class one prop er ties, A, B and C, each

com bi na tion of these, for your prop erty and simi lar prop er ties in the

have a mar ket value of $150,000 as es ti mated by their own ers. How -

area. Mar ket value is never known ex actly; it is al ways an es ti mate

ever, the Fi nance De part ment has es ti mated the val ues of houses A

based on the best avail able in for ma tion.

and B at $200,000 and house C at $125,000. The as sess ments of

Form Tc 600 - How To Appeal A Tentative Assessment - Ney York City Tax Commission

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