NYC Property Tax Opinions and Projections

MGNY Consulting provides property tax planning and advisory services to purchasers, developers, investors and lenders across New York City. If you are evaluating an acquisition, planning a development or reviewing a property’s operating costs, start with the tax assumptions behind the decision.

A current tax bill is a useful starting point. A projection also needs to account for the property’s assessment, applicable benefits and the period you are underwriting. Discuss your property tax projection with MGNY.

What should a property tax projection explain?

New York City calculates property tax using taxable value and the rate for the property’s tax class. Exemptions reduce taxable value; abatements reduce the calculated tax. The Department of Finance notes that rates and benefits can change, so a future-year estimate needs clearly stated assumptions. See the DOF explanation of the annual tax calculation.

For an advisory engagement, discuss the questions your analysis needs to answer:

• Acquisition: Which assessment and benefit records support the seller’s tax expense figure?
• Development: Which construction, completion and occupancy assumptions belong in the forecast?
• Refinancing: What projection period and supporting explanation does the lender need?
• Benefit phase-out: How should the remaining exemption or abatement schedule be reflected in future operating costs?

Records to have ready

• The property address and borough, block and lot number.
• Recent property tax bills and Notices of Property Value.
• Existing exemption or abatement certificates and benefit schedules, if applicable.
• The proposed transaction or development timeline and the years to be modeled.
• Your current underwriting assumptions and any lender or investor reporting requirements.

Agree the scope before relying on the estimate

Use the consultation to define the scenarios, required output, intended recipient and assumptions that need verification. If a lender requires a written tax opinion, identify that requirement at the outset so the form and scope of the engagement can be discussed. A projection is an estimate based on its assumptions, not a determination of future taxes by the City.

If the concern is a current assessment, explore property tax assessment appeals. For a missing existing benefit, see exemption and abatement reinstatement. Our guide to how NYC property tax works explains the assessment-to-bill sequence.

Discuss your tax planning needs

Contact MGNY or call (212) 343-1111. Tell us the property address, the decision you are evaluating and when you need to make it.

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