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NYC Property Tax Update With New 2023-2024 Assessments

by | Jan 18, 2023 | Industry Updates

The NYC Department of Finance (DOF) released the 2023/24 tentative assessment roll on January 17, 2023. The Tax Commission application filing deadline to protest your assessed value is March 1, 2023.

Market values and taxable values increased for tax classes 2 and 4 compared to 2022/23, but at slower rates than last year’s large increases from 2021/22 to 2022/23. Citywide, total market value increased 6.1 percent on the tentative roll. Class 4 (office and commercial space) properties saw a larger increase of 7.4 percent, followed by Class 2 (residential with more than 3 units) properties increasing 0.9 percent. Citywide total billable assessed value increased 4.4 percent.

Class 2 (residential) properties saw billable assessed value increases of 3.1 percent, compared to last year’s growth of 7.0 percent. Manhattan experienced a decline in market values for Class 2, at 1.5 percent; while Bronx experienced the highest billable assessed value percent increase at 11.6 percent. Class 2 rentals saw a market value increase of 0.3 percent, cooperatives increased 0.5 percent, and condominiums increased 5.1 percent. The billable assessed value increased by 1.6 percent for Class 2 rental apartments. Manhattan had a market value decrease at 3.1 percent and Bronx had the highest billable assessed value increase at 11.3 percent for rental apartments.

Class 4 (commercial) properties, which consist of all other real properties such as office buildings, hotels, and stores, saw billable assessed value increases of 5.2 percent, compared to last year’s growth of 8.0 percent. Commercial properties in Manhattan saw the smallest percent increase in billable assessed value, at 4.7 percent. Office buildings experienced an increase of 7.1 percent in market value, retail buildings increased 5.4 percent, and hotels increased 9.7 percent. Total billable assessed value for office buildings increased by 4.4 percent. Citywide retail buildings saw a 4.0 percent increase in billable assessed value. Bronx had the smallest increase in billable assessed value at 1.5 percent for retail buildings. Citywide billable assessed value for hotel buildings increased by 7.8 percent.

Class 1 (one- to three-family homes) market value increased 8.3 percent and billable assessed value increased 6.0 percent over the prior year.

To find your new assessment, click here, click BBL Search, enter the Borough Block & Lot, and in the bottom left under Market Values & Assessments in blue, click 2023-2024 Tentative. To compare it to the prior year, click 2022-2023 Final. To see how DOF valued your property, click Notices of Property Value (NOPV) on the left, and click the 2023-2024 notice dated January 15, 2023.

Challenging Assessed Values. The NOPV and assessment roll give property owners the opportunity to review their tentative assessments and file a challenge to their property’s assessment with the New York City Tax Commission, an independent City agency, before the assessment roll is finalized in May. All properties are valued by law according to the property’s condition on the taxable status date of January 5. The deadline to challenge property values for Class 2, 3 and 4 properties is March 1; the deadline for Class 1 property owners is March 15. Forms and information are available on the Tax Commission’s website.

2023 Tax Commission applications this year must be “original” paper filings with hand-signed signatures and notarizations. Tax certiorari clients of this law firm will soon receive their Tax Commission forms from Ben Williams, who leads our Property Tax Department.

If you are not a tax certiorari client of this law firm, feel free to contact Ben to discuss your 2023 tax assessments and determine if protests are worthwhile. Ben’s practice focuses on NYC property tax assessment protests; contact him at [email protected] or 212-551-1246.

2022 Settlements. Last week the Tax Commission said that in 2022, it received 57,000 applications (decline of 2 percent) covering 246,000 lots (increase of 2 percent). 19 percent of applications got offers. The average reduction offer was 9.4 percent. (Typically the median accepted offer is 8.5 percent.) For the fourth year in a row we continued to achieve larger assessment reductions. Over 30% of our properties got offers, and our median reduction exceeded 10%. Some of our recent successes are highlighted here.

Other deadlines. The deadline to renew Not-for-Profit, ICIP, and ICAP property tax benefits was January 5, 2023. The deadline to file for the Co-op & Condo Tax Abatement is February 15, 2023. The deadline to file the RPIE-2021 was June 5, 2022 – you may have received a monetary penalty on your latest property tax bill if you missed the extended filing deadline.

Tax Rates. We don’t know the new 2023/24 tax rates yet, but we hope to know in June. Last year the tax class 4 (commercial) tax rate had its first decrease in five years, and the tax class 2 (apartment buildings) tax rate had its first increase in six years. We predict 2023/24 tax rates may change only slightly, and may even decrease. Property tax reform continues to be absent from the New York State legislature. It has now been a quiet 13 months since the NYC Advisory Commission on Property Tax Reform released its final report recommending the most significant changes to NYC’s property tax system in 40 years. Ben spoke about it here.

Ben will speak at the New York State Society of CPAs Real Estate committee on January 24 for a tech session on NYC real estate tax certiorari. Ben returns as guest speaker on this Zoom teleconference. He will discuss 2023 updates from the Tax Commission and things to watch out for when filing TC-201s and TC-309s.

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