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Services

What
We Do

MGNY offers a refreshingly simple approach to property tax management in New York City.

From filing compliance forms and annually contesting assessments to preparing tax incentive applications, MGNY covers all the bases. We ask meaningful questions and work alongside each client to determine the best tax savings strategy. Not only do we understand how to achieve value in the future, we also seek to correct the past errors of City authorities and previous representatives.

Read this Disclaimer before using the Site:

MGNY offers consulting and administrative services only. Although one of our principals - Yuri Geylik - is an attorney, MGNY is not a law firm and does not render legal advice or legal services to its clients. The Site and your use thereof does not create an attorney-client relationship with Yuri Geylik or his law firm, Geylik Law PLLC. Information contained on or made available through the Site is not intended to and does not constitute legal advice, recommendations, mediation or counseling under any circumstance.
The information contained on this website does not constitute “Attorney Advertising.”

Full list of Services

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    • Annual Tax Appeal Services in NYC

      It is important to understand that no one property is entitled to a tax reduction as a matter of right. In most cases, a grievance application must be filed before a prescribed statutory deadline. In New York City, there are two types of property tax protests: the Tax Commission Appeal and the Finance Department Appeal. Taxpayers and their representatives must prepare and file the appropriate appeals within a few weeks after the tentative assessment is published.

    • Tax Commission Appeals

      The NYC Tax Commission is the agency charged with reviewing taxpayers’ applications for correction of the assessed value of their property. This type of administrative property tax appeal has traditionally been the most effective because every case is personally evaluated by hearing officers, who are experienced appraisers and assessors. Unless it falls on a weekend, the deadline for filing such applications is March 1st. The application requirements vary significantly among the different property types. Depending on unique circumstances, the application may contain a number of attachments and schedules.

    • Finance Department Appeals

      The NYC Department of Finance (“Finance”) is required to annually re-assess every parcel in New York City for the purposes of taxation. Finance itself provides some mechanisms to submit proof of the alleged errors on the taxpayer’s Notice of Property Value. The most widely used mechanism is the Request for Review (RFR). The deadline for filing is typically between mid-March and early April, depending on the property’s tax class.

      One of the main benefits of this kind of property tax appeal is that it allows a City assessor to physically inspect the property in order to correct any valuation mistakes. It should be noted, however, that Finance may give these protests only a cursory review. It has been the Department’s position that it is NOT required to act upon any RFR.

      MGNY has been successful in lowering property tax liability by requesting changes in the pertinent valuation data used by Finance, including, but not limited to, square footage, tax class, building class, income and expense estimates, and building occupancy/vacancy data.

      If Finance deems it necessary to act upon the taxpayer’s request, the corrections – if any – are reflected on the Final Assessment Roll before the first tax bill is generated. This means that the taxpayer whose assessment is corrected via Change by Notice (before the final roll is published) need not wait for refunds or remissions. The savings are realized immediately.

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    • Annual Compliance Services

      It is always easier to anticipate issues and prevent problems at the reporting stage of the tax cycle. MGNY’s recurrent reporting and compliance services eliminate the taxpayers’ need to keep track of multiple reporting deadlines, and to stay current with constantly changing reporting requirements. MGNY has been at the forefront in terms of alerting owners of upcoming filing deadlines and monitoring the latest changes in the reporting requirements.

    • RPIE Filing NYC

      Owners of most income-producing properties with an actual assessed value over $40,000 are required to file an annual Real Property Income and Expense (RPIE) statement with the NYC Department of Finance (Finance). Many property owners vastly underestimate the importance of filing the RPIE (as well as filing it properly and in a timely manner).

      A prudent owner should approach the RPIE process with the level of diligence it deserves because the RPIE is the first step toward a fair tax assessment. With its ever-increasing grip on RPIE compliance, the City has made it abundantly clear that penalties for non-filing or late filing can be severe. Not only are there monetary fines (traditionally billed as a percentage of the assessed value, but more recently in the form of a flat amount starting at $300 and going all the way up to $100,000), there are a number of other negative consequences for non-filing or late filing.

      For example, taxpayers who miss the annual RPIE filing are denied the opportunity to contest the assessment at the Tax Commission in the following tax year. In addition, when Finance does not receive the relevant data for a taxpayer’s property, the assessors will draw from a pool of comparable properties and impute the value based on hypothetical income and expense projections. This process leaves non-filers at a disadvantage because Finance often miscalculates the value when relying only on data from comparable properties.

      MGNY has been retained by large management companies and individual owners alike to provide the necessary support in the NYC RPIE filing process. Take advantage of our RPIE expertise and immediately reduce the risk of over-assessment.

    • Property Tax Exemption Renewal Filing

      Owners whose properties receive an ICIP property tax exemption are required to file a Certificate of Continuing Use (CCU) annually to preserve their tax benefits. ICAP recipients are required to file the CCU once every two years. Likewise, not-for-profit organizations receiving property tax exemptions on their NYC properties are required to fill out an annual renewal form.

      Non-filers are penalized by having their benefits either suspended or revoked. These fairly simple renewal forms require minimal effort to complete, but can cost hundreds of thousands of dollars in lost or forfeited benefits if not completed and filed accurately before the deadline. MGNY’s annual compliance services minimize the possibility of any long-term benefits being compromised.

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    • Long-Term Benefits

      The spike in new construction and building rehabilitation in New York City has had a significant impact on the supply of both new housing and new commercial units. Moreover, the unprecedented amount of foreign investment has affected the financing and exit strategies for some of the City’s most valuable development sites. At the core of all new construction and major renovation projects lay tax exemption or abatement incentive calculations. The availability of long-term tax benefits can make the difference between going forward with a capital investment in the New York City real estate market or taking the capital elsewhere. MGNY has successfully secured tax abatements and exemptions for developers of residential, commercial, community facility, hotel and mixed-use projects.

    • 421-a Tax Exemption Program

      IMPORTANT: The 421-a program was suspended on January 15, 2016. However, the state legislature is expected to restore the City’s hope for an effective residential tax exemption program. MGNY will publish updates as soon as news comes from Albany.

      The 421-a tax incentive program is a partial exemption for new construction of Class A multiple dwellings. The benefits are now available for all projects that began work on the foundation prior to December 31, 2015.

      The rules are extremely intricate and require in-depth knowledge and strategic analysis during the planning stages of project development. For example, projects within a “Geographical Exclusion Area” (GEA) are eligible to receive benefits only if affordable housing units are created and maintained, or if the project is constructed with substantial government assistance. MGNY encourages developers of residential buildings to contact us at the acquisition stage to determine project eligibility and potential 421-a tax savings.

      Developers often refer to 421-a tax benefits as “421-a tax abatement.” Technically, the term “abatement” refers primarily to fixed or variable amounts of tax discounts applied to the taxpayer’s final bill. Tax exemption, on the other hand, allows for a certain portion of the assessed value to be exempt from taxation. Although they both reduce the final tax bill, the calculation and implementation of exemptions and abatements are very different.

      The 421-a application may be filed upon commencement of construction and must be filed before completion of the project. The preliminary Certificate of Eligibility is issued by HPD upon review and approval of the developer’s application. The benefits are then implemented by the NYC Department of Finance.

    • ICAP Property Tax Abatements

      Commercial construction projects subject to alteration, renovation, new development or other types of physical improvement may be eligible for the Industrial and Commercial Abatement Program (ICAP) property tax abatement. The abatement base for ICAP benefits is determined by subtracting 115% of the pre-construction tax from the post-completion tax on the building. It is important to note that the post-completion tax on the land is not abated.

      There are a multitude of factors for developers to consider when applying for ICAP property tax abatement benefits. For example, if the project cost reaches a certain threshold, there are requirements to promote contracting opportunities among minority- and women-owned business enterprises (M/WBE). In addition, if the project contains areas not eligible for ICAP, the availability of other tax exemption and abatement programs must be considered. MGNY has been successful in procuring ICAP benefits for a variety of projects throughout the five boroughs.

    • J-51

      J-51 benefits are available in the form of both tax abatement and exemption for residential buildings subject to major capital improvements. The 6-20 year abatement allows for partial recoupment of capital expenditures. The exemption is triggered only if there is a physical increase in assessed value resulting from the improvements. For most projects, the exemption term is 14 years; however, government-assisted projects are eligible for a 34-year exemption.

      The eligibility requirements have become more stringent in recent years. Nevertheless, this is still a viable long-term benefit that should not be overlooked when any major improvements are being planned.

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    • Other Services

      By petitioning various City agencies, MGNY is able to dramatically reduce various liabilities imposed by these agencies. Whether it’s reinstating improperly revoked benefits, correcting historic assessment errors or removing ECB penalties, MGNY goes above and beyond to serve the client.

    • Contesting RPIE Penalties

       

      Unfortunately, many property owners vastly underestimate the importance of filing the NYC RPIE – or the Claim of Exclusion – properly and in a timely manner. The City has made it abundantly clear that penalties for non-filing or late filing can be severe. The monetary penalties assessed against the property, if unpaid, become a lien. Currently, penalties are assessed as a flat fee based on the most recent assessed value of the property. The table of penalties and respective assessment ranges is reproduced below:

      Assessed Value Range Penalty Amount Assessed Value Range Penalty Amount
      $40,000 $99,999 $300 $5,000,000 $9,999,999 $20,000
      $100,000 $249,999 $750 $10,000,000 $14,999,999 $40,000
      $250,000 $499,999 $1,500 $15,000,000 $24,999,999 $60,000
      $500,000 $999,999 $3,000 $25,000,000+ $100,000
      $1,000,000 $4,999,999 $5,000 Owners required to file a Claim of Exclusion, and who did not submit a claim, will be fined $100.

      Outstanding RPIE penalties have proven to be a nuisance for both current owners and prospective purchasers. MGNY has helped identify relevant defenses in many scenarios and has contested improperly assessed RPIE penalties. Even in cases in which the penalty is already paid, MGNY has successfully obtained refunds for overpayment.

    • ECB Debt Settlement

      Outstanding Environmental Control Board (ECB) violations have always been regarded as the most difficult type of violation to resolve. This is because multiple agencies fall within the ECB’s jurisdiction, and are therefore authorized to issue ECB violations and penalties. Default penalties become liens against the property if unresolved by the owner or named-respondent. MGNY works directly with the ECB and other agencies to settle outstanding penalties and provide compliance for code violations.

    • Reinstatement of Benefits

      Finance (via City rules) prescribes strict reporting requirements for most properties receiving various tax exemption and abatement benefits. Non-compliance may lead to diminution, suspension and even revocation of such benefits. If you believe that the City has wrongly deprived your property of a tax exemption or abatement, MGNY can help you contest the determination by filing the necessary applications to the Tax Commission and Finance Department, and therefore ensure that the benefits remain intact. If any City Commissioner intends to revoke tax benefits, note that there are procedural safeguards that allow the property owner to effectively contest the City’s determination.