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Managing Your New York Business Property Tax

Posted by Lisa English on Jan 23, 2019 10:42:00 AM

Managing Your New York Business Property Tax

New York businesses have an uphill climb when it comes to property tax, and corporate tax rates in general—it is ranked 49 out of 50 (just above New Jersey) on the Tax Foundation’s state-by-state comparison with regard to business tax climate. And over the last decade, property taxes in New York City have risen at a rate three times faster than income growth. (The recently created New York City Advisory Commission on Property Tax Reform is likely to recommend tax reforms in the coming year.) In recent years, the state has been making strides toward improving its tax system by enacting things like a two percent property tax cap and real property tax relief credits. Still, the tax climate may be a reason why some companies have chosen to leave the state (though that perspective is debatable).

If you do have business property there, we answer some common questions associated with property tax in New York. We’ve also included a chart of key dates to remember—though, as always, dates may vary in some municipalities. We always recommend confirming dates with your local assessor.

Highlights Related To Property Tax In New York State


Is there personal property tax in New York?

No. New York does not tax personal property, so there are no returns to file. Only real property—the land and permanent structures attached to it—is subject to taxation.

How is property tax in New York calculated?

The first step is to determine your property’s value for tax purposes. In New York State, a property’s value can be estimated using the market approach, cost approach, or income approach. In New York City, the Department of Finance determines the worth of properties based on their market value. For “Class 3” properties—utility companies and special franchise properties—value is determined by adding the cost of constructing, reproducing, or replacing the building to the value of the land. For “Class 4” properties—office buildings, factories, stores, hotels, etc.—the department takes into consideration your property’s earning potential and expenses to derive a figure. This value is then multiplied by the appropriate assessment ratio to determine your assessed value. In New York City, Class 3 and 4 properties have an assessment ratio of 45 percent.

Your assessed value is multiplied by the tax rate (New York City 2019 rates are 12.093% and 10.514% for Class 3 and Class 4 properties respectively) to get the final amount owed.

Filing in multiple states? Here's how you can take advantage of the latest tech tools to get more done, faster.   

Are there property tax exemptions in New York State?

Yes. Some organizations, like religious organizations and local governments, are completely exempt from paying property taxes. Most exemptions are offered by local option of the taxing jurisdiction, so you’ll have to check with your assessor to determine if there are specific exemptions you can take advantage of. Large categories of exemptions generally center around nonprofit organizations such as hospitals, educational institutions, and churches.

How will I receive my notice of assessed value?

Value notices are required to be mailed to owners only if the property value has increased. All values are made available on the municipal website with ten days of the Tentative Roll Date. (In most towns and cities, the tentative roll is published annually on May 1.) Local assessment rolls can be found on New York State’s Municipal Profile page.

How often will I receive a property tax bill?

In New York City, bills are mailed four weeks before they are due, either semi-annually or quarterly, depending on the assessed value of your property. Taxes for properties worth more than $250,000 are due January 1 and July 1; properties worth less than $250,000 have tax due dates of January 1, April 1, July 1, and October 1. You can also view your property tax bill online about a month before your taxes are due. For the rest of New York State, most taxpayers receive two property tax bills per year.

What’s the process for filing an appeal?

In New York State, appeals are referred to as grievances. Grievances are filed with the assessor or the board of assessment review in your city or town. Companies with New York City properties typically contact the New York City Tax Commission to file a grievance. If your property is located in a village that assesses property, you’ll have to file two grievances, one for the village and one for the town.

Even if you have filed a grievance, payment of property tax bills is still required while the grievance process is underway. You can read more about grievance procedures here.

 

Key Dates

Explanations

July 1 (previous year) - Valuation Date

July 1 of the previous year is the Valuation Date for most communities.*

Assessments are based on the property's value as of the Valuation Date.

March 1 - Taxable Status Date

March 1 is the Taxable Status Date for most communities.*

Assessments are based on the property's condition and ownership as of the Taxable Status Date.

This is also the due date for exemption applications.

May 1 - Tentative Roll Date

May 1 is the Tentative Roll Date for most communities.*

Assessment increase notices must be mailed within 10 days of the Tentative Roll Date.

Fourth Tuesday in May - Grievance Day

The fourth Tuesday in May is Grievance Day for most communities.*

If you plan to contest your valuation, your grievance application must be filed by Grievance Day.

July 1 - Final Roll Date

July 1 is the Final Roll Date for most communities.*

If your assessment grievance was not successful, you can apply for judicial review of your assessment within 30 days of the Final Roll Date.

September 1 - School bills

School bills are mailed in early September for most communities.*

January 1 (following year) - Municipal and County bills

Municipal and county property tax bills are mailed in early January for most communities.*

 

*Dates may vary in some communities. You should confirm the date with your assessor's office.

Municipal contact information can be found on the New York State Department of Taxation and Finance website.

 

Are you looking for a better way to manage your multi-state property tax assessments?


If you’re paying business property tax in New York State in addition to other states, you need a tool to help you manage it all more efficiently. TotalPropertyTax (TPT) software removes many of the manual burdens associated with the tax cycle, like data entry and information verification. As a result, tax teams that use it are better able to comply with tax requirements and have more time to strategize about lowering their tax bills. Schedule a free demo of TPT today to see how it can help your own team start working smarter.

Download Now: The State Of Property Tax Technology: 2018-2020

Topics: New York property tax