Are you looking to buy a home in New York in the coming year? Be sure to consider the NY property taxes. New York State has the second highest median property tax bills in the nation, only behind New Jersey. They're 147% more than the U.S. average. With these extremely high property taxes, it's essential to get your property's value assessed correctly. If you believe the valuation process made an error, assessing your property too high or placing you in the wrong tax class, you can file a tax grievance.
Steps Involved in the Tax Assessment Process
During the assessment process, the local assessor considers the market value as the price the property would sell for under average conditions. This can include property characteristics like condition, location, and size.
Assessments are usually performed annually. New York State allows communities to be taxed at a percentage of the assessment value, known as the Level of Assessment (LOA).
For example, in Nassau County, the LOA for Class 1 residential properties is 0.1% (0.001). This means that the tentative assessed value for a property with a market value of $800,000 is $800.
If you cannot pay your NY property tax, the state charges interest that compounds daily. If your appeal is denied, it's important to meet the deadlines to lower your tax bill and avoid delinquent taxes.
Understand the Property Tax Grievance Process
Details for filing a grievance differ for each part of the state. For instance, New York County's assessment and grievance schedule differs from that of Nassau County.
1. Key Deadlines for Grievances
In New York, you can only file a grievance for the current assessment. You can't retroactively file for past years. The deadline for filing appeals, known as Grievance Day, is when the Board of Assessment Review (BAR) meets to hear complaints.
In most cases, Grievance Day falls on the fourth Tuesday in May. Because it differs by county and township, we encourage you to contact your municipal clerk or assessor to find the exact date.
If your property's assessed value is less than $250,000, New York property taxes are due quarterly on July 1, October 1, January 1, and April 1.
If your property is assessed at more than $250,000, bills come semi-annually, with tax payments due on July 1 and January 1.
Note that if you pay your property taxes via a bank or mortgage service company, you won't receive a bill. However, you will receive an assessment roll.
2. Gather Documentation and Complete Form RP-524
Once you know the deadline, the next step is to complete either a Form RP-524 (Complaint on Real Property Assessment) or an AR-1 Form.
The form you file will depend on which county you live in. For instance, Nassau County uses the AR-1 Form while Suffolk and Westchester use the RP-524.
The RP-524 form is more common. Read through all the instructions. Inputting the wrong information can result in a denied appeal.
There are six sections to the form:
General information: This includes contact information, property location and identification, name, and address.
Information to determine property's value: This is where you state the date of purchase, purchase price, and relation to the seller if you're not the owner.
Grounds for complaint: Options like unequal or excessive that show why you believe the county's assessment is inaccurate.
Owner representative: Only fill out this section if someone completes the form on your behalf.
Signature: Make sure to sign the form correctly to avoid delays.
Stipulation to an assessment reduction: Only use this section if you agree to a reduced assessment with the assessor.
Focus on accuracy and clarity when completing the form. Attach all supporting documentation you've referenced and keep records of everything you wrote. If you've agreed to a reduced value with the assessor, get a signed copy of the stipulation.
The form is all you need to start the process. However, when your grievance is scheduled, you'll need to gather additional documentation to prove your case.
Escalating to the Small Claims Assessment Review (SCAR)
If you can't agree during the appeal process, you can schedule a judicial review with the Small Claims Assessment Review (SCAR). In some counties, you may receive 3-4 offers before this point. This is a formal hearing where you or your representative from Ownwell appear before a hearing officer and present evidence. There is a small fee for a SCAR judicial review, but if you win the hearing, you'll receive a refund within 90 days if you've already paid your taxes.
3. File the Grievance With Your Local Assessor(s)
Once the grievance form is complete, file it with the county assessor in your city or town. Ensure you get a receipt for the filing.
Some properties have a value assessed by both the village and the town. You must file a grievance with both entities if you are in one of those areas.
Attend Grievance Hearings and Prepare Your Case
The grievance hearing is held by three to five members of the village board, town board, or city council, known as the Board of Assessment Review (BAR). Although assessors must attend, the BAR can't include them or anyone from their office.
You must attend the hearing, along with any retained representation. A retained representative, like Ownwell, can represent you if you fill out part four of the form (owner representative).
Common Pitfalls To Avoid During the Appeal Process
Here are a few tips to avoid common mistakes during the appeal process:
Fill out all paperwork clearly and concisely
Choose representation that can prove your case
Understand your documents and be prepared to discuss them
Collect sufficient evidence to support your claim
Check the assessment rolls for past assessment information
Presenting Comparative Sales Effectively
In New York, residential buildings like small multi-unit residential buildings and single-family homes are in tax Class 1 properties. This class determines the method used to assess their market value, with adjustments for time of sale, location, and size difference.
If you're using comparable sales to prove your property's value, focus on those most similar to yours with lower sale prices. Don't pick properties that sold above market value. Lastly, try to keep to sales within the last year.
The Role of a Property Tax Attorney or Tax Professional
A tax professional or property tax attorney can represent property owners in property tax appeals if necessary. If you've retained representation, they'll attend hearings with you and prepare necessary documentation for your appeal.
At Ownwell, we are also aware of property tax exemptions the general public may not know about. Our expertise in property taxes in New York can help you save money.
Keep Track of Important Dates and Reminders
Don't forget important dates and reminders. The BAR meets on the same day the forms are due, but those dates differ across the state. Double-check your county's dates — some come as early as March 1.
Tips for Effective Communication With Assessors
Appearing before the BAR and making a strong tax grievance case is a bit of an art form. We recommend the following:
Use clear and concise wording and actively listen to feedback.
Don't become defensive, but show understanding and empathy.
Don't be afraid to ask questions if you don't understand something.
Clarify anything the BAR seems confused about, and use respectful and positive language.
Importance of Property Appraisals
Come prepared with a property appraisal. To get the best results, we recommend using a professional tax service like Ownwell. An appraisal can be the best indicator of your property's worth.
Consideration of Property Condition and Market Value
A local property tax professional knows your property's current market value and has access to comparable sales in the area and information about the tax base that the average person doesn't. They also understand what positive and negative property conditions affect the value of your home. These can include curb appeal, structural issues, and outdated features, all of which require seeing the property.
Exploring Local Exemptions and Incentives
In addition to appealing your property's assessed value, the state offers exemptions and benefits that can protect you from property tax hikes and lower your NY tax bill. This includes exemption applications for seniors, veterans, and people with disabilities.
One major program is the New York School Tax Relief Program (STAR). If the property is your primary residence, you may be eligible for the STAR or Enhanced STAR (E-STAR) school district program. Applications are through the New York State Department of Taxation and Finance.
If you're approved, the balance will be deducted from your property tax bill. The approximate STAR reduction is $290 and $650 for the E-STAR.
The Best Way To File a Tax Grievance
Ownwell offers tax grievance services, which include filing your RP-524 or AR-1 form on your behalf. We have local New York property tax consultants to help lower your New York property taxes.
Enter your address today to see which exemptions you qualify for and determine how much you could save by filing a property tax grievance.
