NYC Property Tax Update

Dear Clients,

  • Last night the New York City Council passed the property tax rates for fiscal year 2020/2021.
    • Tax Class 2 (apartment buildings) decreased 1.65% to 12.267% - the lowest rate in 13 years.
    • Tax Class 4 (commercial) increased 1.48% to 10.694% - the highest rate in 14 years.
    • Tax Class 1 (1-3 family homes) decreased 0.58% to 21.045% - the second highest rate in 20 years.
  • Today, July 1, is the due date for payment of the first half or first quarter property taxes for fiscal year 2020/2021.
  • Today, July 1, is the deadline to electronically file the Real Property Income & Expense form RPIE-2019 and new Storefront Registry. The new RPIE Rent Roll spreadsheets must be uploaded by September 1.
  • The interest rates for the late payment of property taxes are 18% for assessments over $250,000, or 3.25%-5% for assessments under $250,000. The New York City Council recently passed legislation that reduces the late payment interest rate for property taxes due on July 1, 2020, for eligible property owners who have been impacted by COVID-19.
    • The legislation reduces late payment interest from 3.25% to 0% from July 1 through September 30, 2020, for property owners who are billed quarterly and own property with an assessed value of $250,000 or less.
    • The legislation also reduces late payment interest from 18% to 7.5% from July 1 through October 15, 2020, for eligible property owners who are billed semi-annually and own property with an assessed value of more than $250,000.

Sincerely,
Benjamin Williams