CLIENT ALERT: NYC Property Tax & Essential Construction Update | April 23, 2020

Dear Clients,

We're writing to update you regarding key property tax, tax incentives and essential construction information for your properties and development projects.

RPIE Deadline Extended:

The NYC Department of Finance extended the Real Property Income & Expense form RPIE-2019 filing deadline to July 1. The new Storefront Registry is also due with the RPIE. However, the deadline to file the new RPIE Rent Roll was extended to September 1. See http://nyc.gov/rpie.

ICAP Program Extended and Modified:

The deadline to apply for tax benefits under the Industrial & Commercial Abatement Program (ICAP) was extended three years from March 1, 2022, to March 1, 2025. However, self storage facilities are no longer eligible for benefits. The ICAP amendments were passed in the State budget laws.

Property Tax Update:

A few legislators proposed laws that would provide property tax relief, but none have passed. Taxes are still due on July 1.

We are already having tele-hearings with the NYC Tax Commission to protest tax year 2020/21 assessments.

Based on Mayor de Blasio's latest executive budget, he does not expect property taxes to decrease. He expects city property tax revenue for 2020/21 to grow 4.1% over 2019/20. For tax years 2021/22 to 2023/24, he forecasts property tax revenue growth to average 2.6%, which is slower than his prior forecasts.

Essential Construction Update:

Despite the NYS Executive Order 202.6 prohibiting non-essential business operation, certain types of construction work have been approved by NYS and NYC as "Essential Construction" provided appropriate safety measures are followed. These include projects containing affordable housing and ongoing projects for "Essential Businesses." We have assisted a variety of residential and non-residential projects in obtaining Essential Construction approval. If you have a planned or ongoing construction project in need of NYC DOB approval as Essential Construction, please let us know how we may assist you.

Please don't hesitate to reach out with any questions.

Sincerely,

Benjamin M. Williams and Daniel M. Bernstein