Are You Finding it More Difficult to get Tax Reductions?

Now that the deadline for filing 2021/22 Protests is past, we can all breathe a sigh of relief at the – albeit brief – respite before hearings for 2021/22 commence.

As we have advised our clients, it has become increasingly difficult to obtain reductions from the Tax Commission. Filing an application together with an Income and Expense form is typically no longer sufficient in order to obtain a reduction in assessed valuation. The City expects taxpayers to furnish explanations of significant increases or decreases in not only income received from one year to the next but also expenses incurred and to make the City aware of any significant changes that have occurred from one year to the next that might impact the assessed valuation.

As far as vacancies are concerned, claiming ‘we cannot rent the space’ is, similarly, no longer sufficient. We must convey the efforts you are making in trying to do so – listings with broker, advertising, price/square foot asking…

Now that we are headlong into preparation for hearings, please furnish us with whatever additional letter, documentation, backup and explanations that you can that you believe could assist us in obtaining a real estate tax reduction for your properties.

If there have been unusual circumstances in connection with your property – recurring problems with certain tenants; rent reductions/concessions you have had to make in order to keep tenants in place, physical alterations (fire, flooding destroying or major improvements made or contemplating being made in order to make premises rentable)… Let us know: how much and for how long? Structural problems with the property inhibiting your ability to rent to new tenants? Perhaps you could furnish photographs to back up your claim – to show dilapidation….

Please forward to us a brief description at your earliest convenience. Even if you do not think the information may be relevant, let us review and make that decision. The more information we supply the City with, the better.

Of course we understand that the 15th is a significant tax deadline – please ensure to address this once your tax obligations have been addressed so we can put our best foot forward and obtain excellent results on your behalf.

Please contact us if you have any questions, concerns or issues you’d like to discuss.

-Richard Chernoff

New York Advisory Services, Inc.