Market Value
The price that a property would fetch in the marketplace, subject to the following conditions:
- Prospective buyers and sellers are reasonably knowledgeable about the property; they are behaving in their own best interests and are free of undue pressure to trade.
- A reasonable time period is given for the transaction to be completed.
Percentage of Value
The city's policy is to assess Class 2 (residential) and Class 4 (commercial) properties at 45% of market value. Class 1 properties are assessed at 6% of market value.
Offer of Reduction
In the event that an offer is made, we will advise the client of the offer and make a recommendation of acceptance or rejection. If the offer is accepted, the client must agree to forego filing a court proceeding for the current year and to discontinue all pending court proceedings for the property.
Tax Class
Four groupings (Classes 1, 2, 3, and 4), to which every property in the City is assigned, based on the use and size of the property.
- Class 1: Includes most residential property of up to three units (family homes and small stores or offices with one or two apartments attached), vacant land zoned for residential use in boroughs other than Manhattan, and most condominiums that are not more than three stories.
- Class 2: Includes all other property that is primarily residential, such as rentals, cooperatives and condominiums.
- Class 3: Includes property with equipment owned by a gas, telephone or electric company.
- Class 4: Includes all commercial and industrial property, such as office, factory buildings and vacant land other than in Tax Class 1.
Legal Proceedings
A petition is filed with the New York State Supreme Court under Article 7 of the Real Property Tax Law. This filing preserves the client's right to argue this case later at the Tax Commission, Law Department or at a Supreme Court trial. If there is no progress made at the Law Department, the client may file a Note of Issue with the court, which is essentially a formal request for a trial. After a trial date is set, the petitioner and respondent exchange appraisal reports. Unless settled, a trial will then be held and a decision rendered by the judge.
Request for Review
This procedure is used when we discover that the assessor has made a patent error in the valuation of the property. Unlike a settlement at the Tax Commission, a Department of Finance correction of the assessed valuation does not require the client to forgo a Tax Commission hearing nor a court petition.
The Process
Department of Finance assessing personnel are responsible for estimating the market value of each of the city’s tax lots as of January 5th, the annual taxable status day. Assessors may employ the Sales Comparison, the Cost or the Income Approaches to arrive at market value. After the market value is estimated, the assessed value is calculated by multiplying the market value by a uniform percentage of value for the tax class.
Each year, the Tentative Assessed Values are scheduled to be released on January 15th. The first step in challenging a tax assessment is to file an Application for Correction with the New York City Tax Commission by March 1. The basis for a reduction includes overvaluation, inequality or illegality. A Tax Commission hearing is scheduled and held, and either an offer of reduction is made or the assessed value is confirmed.
In the event that a satisfactory result is not achieved at the Tax Commission, with the approval of the client, The Mazursky Group, Inc. will recommend a certiorari law firm to begin legal proceedings.
Another means of challenging the assessment, when it is deemed appropriate, is to file a formal Request for Review with the Department of Finance.
To learn more about our role, continue on here.