If you believe your NYC property is over-assessed, you have the right to challenge the assessment through the NYC Tax Commission. Approximately 30-40% of challenges result in some reduction. Here is how to do it.
Step 1: Review Your Notice of Property Value (NOPV)
Each January, the NYC Department of Finance mails the Notice of Property Value showing your property's tentative assessed value for the upcoming fiscal year. Review the key figures: market value, assessed value, and tax class. Compare these to recent comparable sales and your property's actual income.
Step 2: Determine If You Have Grounds
Common grounds for challenge include:
- Overvaluation: The DOF's market value estimate exceeds what your property would actually sell for
- Unequal assessment: Your property is assessed higher than comparable properties
- Incorrect classification: Your property is in the wrong tax class
- Misvaluation of income: For Class 2 and 4 properties, the DOF's income assumptions are wrong
Step 3: Gather Evidence
Depending on your property type:
- Class 1 (1-3 family): Comparable sales within the last 2 years, evidence of property condition issues, appraisal
- Class 2 (apartments): Actual income and expense statements, comparable rental data, capitalization rate analysis
- Class 4 (commercial): Income and expense statements, lease abstracts, comparable sales or rentals, cap rate evidence
Use RegWatch's free tax calculator to research assessed values for comparable properties in your area. The full platform provides detailed tax analysis for any NYC property.
Step 4: File Your Application
Deadlines:
- Class 1: March 15 (for the fiscal year starting July 1)
- Class 2, 3, 4: March 1
File online through the NYC Tax Commission website or in person at 1 Centre Street. The application (TC forms) requires your property's identifying information, the basis of your challenge, and supporting evidence.
Step 5: Attend Your Hearing
The Tax Commission schedules hearings from March through May. You can appear yourself or have a representative (attorney, accountant, or tax consultant). Present your evidence clearly and be prepared to answer questions about your property's condition, income, and comparable properties.
Step 6: Receive the Decision
The Tax Commission issues decisions before June 1. If granted a reduction, it applies to the upcoming fiscal year. If denied, you can pursue a Tax Certiorari proceeding in State Supreme Court (a more formal legal process typically requiring an attorney).
Professional Help
For properties with significant tax bills, hiring a tax certiorari attorney is often worthwhile. They typically work on contingency (25-33% of savings) and handle the entire process. For smaller properties, the Tax Commission process is straightforward enough to handle yourself with good evidence.