Tentative Assessments and Initiation of the Tax Cert Process

New York City faces a continuing decline in state and federal funding. Increased property taxes continue to be a reliable revenue stream to fund local services. Every January 15th, the NYC Department of Finance (DOF) sends to each owner of NYC real commercial property a Tentative Assessment setting forth (i) the market value of the lot, including improvements, (ii) the actual assessed value of the lot, and, most importantly, (iii) the value upon which the lot will be taxed for the upcoming fiscal year. The property owner has until March 1st to challenge the Tentative Assessment determining the amount of tax to be paid on the property. If this tax appeal, often referred to as Tax Certiorari or Tax Cert, is not filed by March 1st, the owner absolutely loses its right to challenge the assessment for the upcoming tax year.

Important Dates

The NYC real property tax assessment and Tax Cert procedure is calendar driven. Please consider the following dates:

• The upcoming NYC tax year begins on July 1, 2011 and runs through June 30, 2012

• The January 15, 2011 Tentative Assessment is based on the property’s condition as of January 5, 2011 (referred to as the “Tax Status Date”)

• The absolute deadline for filing Tax Cert challenges to a property’s assessment is March 1, 2011 - property owners that do not file Tax Cert applications by March 1st lose any right to contest assessments for the ensuing July 1, 2011 through June 30, 2012 tax year...