Below, you can find definitions of certain terms and concepts used throughout the website.
Also known as Affordable New York, is a tax abatement that encourages developers to build, market, and maintain affordable units. The rules are complex and are impacted by items such as, where the development is located, the number of units, if the project received government assistance, and others.
A program that provided developers a tax exemption for building a multi-unit residential project on vacant land. It expired in October 2017; however, there are benefits available for projects that began foundation work before December 31, 2015.
Annual Tax Appeals
A property owner can challenge the assessed property value by appealing with the NYC Tax Commission. The deadline for appeals for a class 1 property is March 15 and April 2 for all others. The Commission holds hearings between March and October to consider reducing assessments.
Building Classification Codes
The New York City Department of Finance has created classes of properties that allows for taxation of different types of properties at different rates.
Certificate of Continuing Use (CCU)
The Industrial and Commercial Incentive Program (ICIP) was created in 1984 and replaced by the Industrial and Commercial Abatement Program (ICAP) in 2008. The programs were designed to stimulate economic development via tax exemptions and abatements for construction or rehabilitation of commercial, industrial, or mixed-use buildings. Builders and owners are required to file a CCU each year as part of their annual reporting requirement.
Environmental Control Board (ECB) Debt
ECB fines are levied against a person or business when there are quality-of-life violations, such as construction before or after hours, dangerous sidewalk conditions, and breaking construction safety rules.
Finance Department Valuation Data
The NYC Finance Department evaluates property each year as one step to determining the tax bill. They provide property maps by tax class, trend reports, and data tools to property owners https://www1.nyc.gov/site/finance/taxes/property-assessments.page
Geographic Exclusion Area (GEA)
This is the area of the city where a property owner must provide affordable housing in order to receive the 421-a benefits.
Industrial and Commercial Abatement Program (ICAP) Property Tax Abatements
ICAP provides abatements for property taxes for up to 25 years. Eligibility requires that industrial and commercial buildings built, modernized expanded, or physically improved. The location of the property, usage of its taxable assessed value, and length of time it takes to complete construction has an impact on whether the property is eligible for the abatement.
Industrial and Commercial Incentive Program (ICIP) Property Tax Exemption
ICIP was created in 1984 in an effort to stimulate economic development via tax exemptions and abatements for construction or rehabilitation of commercial, industrial, or mixed-use buildings. It is administered by the Department of Finance which reviews projects to ensure they are continuing in compliance with the program. It was sunset in 2008 and replaced by ICAP. To qualify for ICIP, all construction work must have been completed prior to December 31, 2013.
A property tax exemption and abatement for owners and developers that renovate residential apartment buildings. Eligibility is determined by the NYC Department of Housing Preservation and Development (HPD) and varies depending on the property location and the type of renovations.
New York City Tax Year
The property tax fiscal year is July 1 to June 30. Property tax bills are due either two or four times a year depending on the assessed value of the property.
If property’s assessed value is:
Less than $250,000, bills are mailed quarterly More than $250,000, bills are mailed semi-annually Quarterly Payment Due Dates Quarterly Payment Grace Periods Semi-Annual Payment Due Dates July 1 July 15 July 1 October 1 October 15 January 1 January 15 January 1 April 1 April 15
Property Assessed Value Appeal
If an owner or builder believes the Notice of Property Value (NOPV) is inaccurate, they can challenge the assessed value with the NYC Tax Commission. In response, the Tax Commission may reduce the property’s assessment, change the tax class, or adjust exemptions. The deadline for Class 2, 3, and 4 properties is March 1, and the deadline for class 1 is March 15.
Property Tax Abatement
Programs that reduce or eliminate the total property tax that owners pay on new construction or major improvements for a certain time period. There are different types, such as the 421-a and J-51, that encourage certain types of projects in specific areas.
Property Tax Class
There are four property tax classes that impact the total property tax amount.
- Class 1 – Most residential property up to three units and most condos that are three stories or less.
- Class 2 – Primarily residential that does not fall into class one.
- Class 3 – Most utility property.
- Class 4 – Commercial and Industrial properties that are not included in the other three classes.
Property Tax Exemption
A status assigned to a property that lowers a portion or all of the property’s value. The exemption is typically based on the property’s ownership, location, and purpose.
Real Property Income and Expense (RPIE) Statement Filing and Penalties
The NYC Department of Finance requires owners of income-producing properties to file an annual Real Property Income and Expense (RPIE) statement. It must be completed accurately and filed properly and on time or there could be monetary fines and other penalties.
The process for seeking a legal review of the property tax assessment. In NYC, a tax certiorari cannot result in a higher tax assessment; it can only be reduced or confirmed.