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Step-by-Step Guide on How to Challenge your NYC Property Tax Assessment

If you’re an NYC homeowner, then you know that your annual Notice of Property Value (NOPV) comes out every January 15th. In this NOPV, it indicates your property’s Market Value, Assessed Value, Effective Market Value, Exemptions, and Taxable Value. In the NOPV, it gives you instructions on how to challenge your assessment if you disagree with it. Unfortunately the instructions aren’t so easy to follow (maybe by design) so we decided to create a step-by-step guide on how to challenge your market value with Department of Finance and a step-by-step guide on how to challenge your assessed value with the NYC Tax Commission. 

Notice of Property Value – DOF (nyc.gov)

As you can see here, one very important thing to note is the following statement, “Many property owners consider requesting review of their market value in hopes of reducing their property tax. However, your property tax will not go down unless you can prove that the market value should be lower than the effective market value.” The effective market value is the market value you are “effectively” paying taxes on, and the effective market value is determined by your assessed value as well as the legal caps that apply to your property based on your property’s tax class. In order to have your taxes reduced, you need to challenge the assessed value with the NYC Tax Commission.

The NYC Tax Commission is an independent agency that is separate from the Department of Finance. They have the authority to reduce your property’s assessed value, change it’s tax class, and adjust your tax exemptions. The Tax Commission cannot change your market value, property description, or building class.

That said, before filing with the Tax Commission, review your Notice of Property Value (NOPV). If it has a line called “Effective Market Value,” you must prove that your current market value is less than the Effective Market Value in order to win your Tax Commission appeal.

Appeal Deadline to the Tax Commission:

  • March 15 (Class 1)
  • March 1 (Class 2, 3, and 4)

Appeals received after these dates will not be granted.

Challenge Your Assessment (nyc.gov)

Challenging Notice of Property Value – Tax Commission (nyc.gov)

PLEASE NOTE: You must file in person or by mail, you cannot file online or by email.

YOU MUST:

1. Complete and file an Application for Correction. All applications and instructions are available on their website.
 

Be sure to use the right application form:

TC108 FOR VALUATION CLAIMS FOR ALL TAX CLASS 1 PROPERTIES
TC101 FOR VALUATION CLAIMS FOR TAX CLASS 2 OR 4 PROPERTIES, OTHER THAN CONDOMINIUM UNITS
TC109 FOR VALUATION CLAIMS FOR CONDO UNITS IN TAX CLASS 2 OR 4
TC106 FOR CLAIMS RELATING TO TAX CLASSIFICATION AND NONPROFIT AND COMMERCIAL (e.g. J51, 421-a) EXEMPTIONS

General Instruction Forms

Application Forms and Specific Instructions

2. You must file your application by the deadline.

How to file:
You can file in person or by mail to:

• THE TAX COMMISSION OFFICE AT ONE CENTRE ST., ROOM 2400, IN MANHATTAN

• DEPARTMENT OF FINANCE BUSINESS CENTERS IN EACH BOROUGH:

Bronx  – 3030 Third Avenue (East 156th Street): Business Centre 2nd Floor  
Manhattan – 66 John Street (William Street): Business Center 2nd Floor
Brooklyn – 210 Joralemon Street Business Center
Queens – 144-06 94th Avenue (Sutphin Blvd): Business Center 1st Floor
Staten Island – 350 St. Marks Place (Hyatt St.): Business Center 1st Floor

The filing deadlines are:
MARCH 1st, FOR TAX CLASS 2, 3 AND 4 PROPERTIES.
MARCH 15th, FOR TAX CLASS 1

If you would like to challenge your “market value” with the NYC department of finance, you can do so online by visiting the below link. This link will give you step by step instructions on how to challenge your market value with the department of finance. The process is called a “Request for Review” (RFR). You can complete the entire process online, all you’ll need is your property details as well as recent comparable sales (AKA Comps) to support your appeal. If you need comps for your appeal, feel free to Contact Us or give us a call.

Assessment and Valuation Forms (nyc.gov)

Hope this helps you homeowners out there 🙂 If you have any questions or need some advice, feel free to call us at 718-968-5538

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