On January 24, 2019, the Tax Commission of the City of New York approved legislation to raise the threshold for accountants’ certification of the Form TC201, Income and Expense Schedule for Rent-Producing Property on Form TC-309. The threshold would be raised from an assessed value of $1 million to $5 million. The proposed law has also accounted for future adjustments to the new threshold amount.
Every five years, beginning July 1, 2024 (the first adjustment year), the Tax Commission will calculate the assessed value threshold and
Mayor De Blasio will have 30 days to reach a decision regarding this amendment to New York City Administrative Code § 11-216, formerly known as NYC Adm. Code §E17-16.1, as added by Local Law 27 of 1973. It is anticipated that the Mayor will sign the bill in its current condition as he previously reviewed and revised it.
How this impacts you.
The bill will take effect immediately upon the Mayor’s signature, and is retroactive to January 1, 2019. This means that all real estate tax appeals filed for the 2019/2020 real estate tax period would be subject to the $5 million assessed value—not the longstanding $1 million assessed value.
This significant change will have an immediate impact on your tax filing procedures. As a building owner, you are advised to contact your Friedman advisor for guidance as this potential law unfolds.