By Joshua Davis
The new year means new property tax rates for residents throughout Brooklyn and the city at large. And with new taxes come fresh tears to the eyes of many small business owners and homeowners who worry they may be overtaxed. A group of close to 40 homeowners and residents from Clinton Hill and surrounding areas attended at a public meeting on the subject of overtaxing last week because “people have had an astronomical increase in their property taxes in a one-year period,” says Clinton Hill Society membership chair Monica van Halle. Speaking at the Clinton Hill Society’s first meeting of the new year—at the St. Luke’s Church Parish House on 259 Washington Avenue—was the Tax Commission of the City of New York’s president, Glenn Newman, who came out on a windy and bitter cold night to advise property owners about their property tax assessments and the appeals process for a questionable assessment. Properties are valued, said Newman, in three different ways: overall building costs, income capitalization methodology and comparable sales. The comparable sales method is used to appraise Class One buildings, or one, two and three-family homes. This method looks at the sale price of a comparable home and makes adjustments according to any differences. The income capitalization method is used for income producing property and audits the income from be building, against any expenses, to determine an appraisal. The cost method is commonly used for industrial buildings, such as an energy plant, that has unique uses. Limits on annual assessment increases exist at the following rates: a six percent annual cap for Class One properties with a 20 percent five-year cap; and an eight percent annual cap on Class Two properties with a 30 percent five-year cap. Challenges to the assessed value can be made to the Tax Commission if a property owner believes their tax increase was based on an overestimated assessed value. Property owners, said Newman, can obtain a form to aid them in the appeals process. Tax Commission form TC 600 includes information on how to determine if a property is over-assessed, as well as ways to appeal a tentative assessment. Another form, the TC 600 Checklist, exists to ensure applications are filled out properly. Newman advised that property owners take the following steps towards filling out a fill out their protest forms properly: write in ink; identify properties by either block or lot number or by street address; and sign the form. “We try to make this as simple as we can so we don’t just throw out the application,” said Newman.” Appeal hearings are held at the Tax Commission headquarters in Manhattan, 1 Centre Street, or in Brooklyn at the Finance Property Division office, 210 Joralemon Street, 2nd Floor. Tips for a successful appeal, said Newman, include evidence such as pictures, written statements and live sworn testimony. “Pictures are always good, a report from a plumber or engineer that says, ‘yea, there’s a recurring problem with flooding in the basement,’ is even better,” advised Newman. “You need to marshal the proof that you have that the value of you property is less than what [DOF] thinks.” “You can’t just come in and say, ‘my property isn’t worth what [DOF] says,’ and not come in with supporting evidence.” Appeals must be received by March 15 for all Class One properties. Newman said that many people make the mistake of postmarking their appeal by March 15 and warned that if it is not received by 5 p.m. on March 15 then the property owner will lose their right to appeal. Class Two property owners must file by March 1. The Assessment Roll becomes final on March 25. At this time all protesting property owners with appeals pending will pay the higher rate and, if the property owner wins their appeal, an adjustment is made to compensate for any overpayment. Once the appeals hearing concludes, a decision is issued via postal mail, which a property owner can either accept or reject. If the owner is not satisfied with the result, the option exists to go to small claims court, which carries a $30 fee. While an appeal can become involved, some area residents say they are up to the task. “It seems pretty straightforward,” said Clinton Hill homeowner Ed Keough. “It’s like anything, like fighting a parking ticket…just show up and you get a break.” More information on property tax assessments can be found online at nyc.gov/html/taxcomm and www.nyc.gov/html/dof/html/home/home.shtml. DOF and the Tax Commission will hold information sessions in each borough next month. Brooklyn’s meeting is scheduled for Thursday, February 16 at 10 a.m. at 210 Joralemon Street, Room 201.
