The Tax Commission recently published its 2024 Annual Report. We reviewed this report in comparison to prior years to provide critical data and trends that will be invaluable for property owners navigating the appeal process throughout 2025. Below are essential highlights and insights we drew from this year’s statistics.
Overview of Applications
In 2024, the Tax Commission received 57,304 applications, covering 261,272 separately assessed tax lots, totaling an aggregate assessed value (AV) of $274 billion—the highest recorded in over a decade. This represented 88% of New York City’s total AV and 24% of all tax lots citywide.
|
Metric |
2024 Figures |
Change from Last Year (2023 to 2024) |
|
Applications Filed |
57,304 |
+0.4% |
|
Separately Assessed Tax Lots |
261,272 |
+3.0% |
|
Aggregate Assessed Value |
$274 billion |
+3.9% |
|
Average AV per Application |
$4.8 million |
+3.4% |
Geographic Distribution
Manhattan dominated appeals, making up 40% of applications yet accounting for 73% of the protested AV. The average AV per application in Manhattan stood at $8.7 million, significantly higher than other boroughs.
Review and Offer Rates
Of the total applications, the Tax Commission substantively reviewed 30,815 (54%), a figure consistent with historical averages. Among these, 8,045 applications (26%) received reduction offers, equating to 14% of all filed applications. Both 2024 and 2023 had unusually low overall offer rates (14%) compared to the median of 17.6% over the past 11 years and a historical median of 33.0% for applications receiving substantive review.
There were significant variations in offer rates:
- Bronx: notably lower offer rate at 9.0%
- Tax Class 2 rentals: record-low offer rate at 8.2%
- Tax Class 1: very low offer rate at 3.8%
- Tax Class 3 (utilities): extremely low, with just one offer (1.1%)
- Hotels: low offer rate at 8.9%
- Vacant Land: low offer rate at 6.0%
Tax Class 2 co-ops and condos fared relatively better, achieving a 17% offer rate.
Offer Acceptance Rates
Of the 8,045 offers extended in 2024, 6,722 (84%) were accepted—consistent with historical trends. However, only 12% of all applications filed resulted in an accepted offer, below the 11-year median of 14%.
Assessment Reductions
The Tax Commission offered $4.65 billion in total AV reductions, equating to only 1.7% of all protested AV—the lowest rate in over a decade. The average reduction per offer was $578,000, marking a 12% decrease from last year. Accepted reductions totaled $3.78 billion, representing just 1.4% of all AV under review, the lowest in the past 11 years.
Most reductions (54%) were modest—under 10%, aligning closely with the Tax Commission’s median reduction of 8.5%. Larger reductions exceeding 20% were rare, accounting for just 14% of offers.
Sector Analysis
Office properties (Tax Class 4), which comprised 26% of protested AV, received offers at a notably higher rate (19.6%), suggesting recognition by the Tax Commission of potential over-assessments. Higher-than-average offer rates were also observed for:
- Tax Class 2 condos: 21.3%
- Tax Class 4 stores: 18.4%
Prior-Year Adjustments
The Commission also provided adjustments for prior tax years. In 2024, $1.54 billion in reductions were offered for the 2023/24 tax year to 2,686 applications—fewer than 5% of all filed applications. The acceptance rate for these prior-year offers was below 70%, noticeably lower than the current-year acceptance rate of over 80%.
Combined Offers (Current and Prior Year)
The combined AV reductions from current and prior-year offers accepted in 2024 totaled $4.78 billion—a 7.2% decrease from last year and the lowest on record, well below the 11-year average of approximately $5.9 billion.
Final Implications for 2025
The 2024 statistics clearly indicate the Tax Commission’s increasing stringency in granting reductions, particularly impacting residential rental properties. Moving forward, property owners and their representatives should anticipate careful scrutiny and prepare thoroughly to effectively navigate this increasingly challenging environment.
These trends and insights will serve as important references throughout the 2025 appeal cycle, especially for those sectors experiencing consistently low offer rates.
