New York City Practice
• Confirm and report to client annual tentative assessed values (January of each year).
• Prepare and file appeals of assessments deemed to be excessive to the New York City Tax Commission (prior to March 1 of each year).
• Prepare comprehensive valuation documentation in support of appeals and present our valuation case to the Tax Commission. This documentation includes an analysis of the client property income and expense performance for prior years, compilation of information on the sales of comparable properties during the appropriate time frame and a review of the current assessments of comparable and competitive properties.
• File the mandatory annual Real Property Income & Expense report with the NYC Department of Finance.
• Project property tax expenses for clients’ new construction/development projects to assist in pro forma development budgeting.
• New Construction Valuation/Assessment: When our client undertakes new construction, we act as the liaison between the property owner and the Assessor, providing both property and market data, as well as comprehensive valuation analysis, in order to lead the Assessor to the most favorable new assessed value conclusion. Specifically, this work involves the following steps:
• Evaluate the transaction relating to the land underlying the new construction to understand if there was a land acquisition, a contribution of land to a development entity, or if the land remains under a constant ownership.
• Work with the property manager and/or construction manager to assemble construction and development cost data, in order to summarize a cost approach to value for the new construction.
• Develop income capitalization analyses based on the lease economics anticipated and/or contracted with new tenant(s).
• Submit to the Assessor's Office the cost and lease data, and our income capitalization analyses, asserting the lowest value we believe supportable. The actual data submitted is dependent on a particular Assessor Office’s approach to valuing new construction. For example, Los Angeles County uses a cost approach to value new construction. Consequently, we submit only cost information, and no income information.
• Negotiate with the Assessor's Office to achieve the lowest possible addition to the assessed value of the property due to the new construction.
• Once new assessed values are agreed upon, provide the Assessor with a chronology of the assessable events, i.e. the dates at which the increments of new value for land, shell and individual T.I.’s should be placed on the roll.
Fixed Charges & Special Assessments
• Review and verify accuracy of all fixed charges and special assessments that appear on the tax bill. Challenge or file appeals of those charges determined to be inaccurate or excessive.
Business Personal Property
• Filing of 571-L annual business property returns. To see 571-L Business Property Statement (California), download PDF here.
• Appeals of annual assessments and results of every four ( 4) year audits of returns
• Comparison of real property assessment records and personal property assessment records to insure no double counting/assessment of assets
Assessment Appeal Filing
On an annual basis we review updated property information, estimate then-current fair market value, identify the then-new assessed value for the property, and file assessment appeals if appropriate. (In California this is referred to as Annual Proposition 8 appeal filing).
Base Year Value Appeals, including appeals of Supplemental and Escape Assessments (in California): In the event that the Assessor imposes a new Prop 13 Base Year assessed value as a result of a change in ownership and/or new construction that we believe is excessive, we file an appeal challenging this base year value.
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