NYC Property Assessment Value - How to challenge / appeal?

[John Zhang]

I purchased a 1 BR in Astoria in a newly built condo in September 2021. The cost of condo is $600k and the initial listed property tax was $410 per month. I just received my annual Notice of Property Value (NOPV) which indicates my new property tax will be $687 for 2022 - 2023. I knew that the initial listed property tax would increase but did not expect a 67% increase.

I have the option to challenge their assessed value of my property. Does anyone here have any experience in this process or have referrals to people who may be able to help?

I appreciate any replies / inputs

Thank you!

[Drew Donovan]

I have a lot of experience with this. It’s expected in a new development condominium. If you were an early buyer, the schedule A you reviewed detailed the real estate taxes for the first year, but this year tends to be misleading as it is an estimate usually coinciding with a building that is still under construction. It is inherently less expensive while still considered under construction.

Within the offering plan there is likely a paragraph within the tax opinion letter that covers the estimated value of the units once fully assessed. If you take your percent of residential common interest times the estimated assessed/taxable value, and times that by the tax rate (~12.3% - I am assuming based on tax class 2) you will then get your units real estate taxes for 7/1/22-6/30/22. You can compare that to what you see on your notice of property value to determine whether or not you are being reasonably taxed.

Your property manager/board should be actively working with a tax certiorari to fight the values at the association level. This needs to be done now via a TC109 and TC203 (before March 1 or March 15) so that your association preserves their rights to protest the taxes for this 7/1/22-6/30/22 tax year. The TC forms mentioned above are specific to Tax class of Four and could differ if you were in a different tax class. 

In short, I recommend this be fought at the association level as I do not believe at the individual unit level is feasible. The fees for the petitions and applications are generally nominal. They (the tax certiorari) works on contingent fees and are only paid if successful in grieving the taxes. 

If you need anything else, let me know. I work with several good firms and can connect you. They work on larger associations so they may not be interested but doesn’t hurt to inquire.