Time is Now for New York Property Tax Assessment Appeals

February 17, 2011

The tough economy is putting businesses across the country under pressure to keep finding efficiencies wherever possible. For many businesses in New York State, this pressure is compounded by property tax assessments that may be too high.

Challenging a Tax Assessment in New York State

To challenge excessive valuations, New York businesses must follow a clearly established procedure. A lawyer experienced in property tax disputes can assist throughout the process. Contingent fees are often available, by which the business pays the attorney a percentage of the amount saved on the tax bill by a successful challenge.

The first step in challenging an artificially high assessment is to talk to the local assessor. Resolution of disputes at this stage depends on developing facts to support a claim that the assessment is excessive.

Property values ebb and flow over time. When a community waits too long to adjust the assessments -- the value on which property is taxed -- the result can be an unjustifiably high tax bill for a particular business.

That is why attorney Patrick Seely, of Hacker Murphy, LLP in the Albany area, advises business to keep close watch on this. "Property owners should keep an eye on what the equalization rate is in their town," Mr. Seely tells clients. As a commercial or industrial business owner, you need to know whether it's going up or down.

Initiating a Tax Assessment Appeal

If the property tax dispute cannot be resolved through dialog with the local assessor, the process of challenging tax assessments becomes more formal.

The second step is the administrative level. This involves filing a grievance with the local board of assessment review, along with documentation (such as appraisals) in support of a reduction in taxes.

This grievance must be filed by the fourth Tuesday in May. That date is nearly uniform throughout New York State.

If the grievance is not successful, the final step is to sue the assessor in state court.

Recapping Reasons for a Tax Challenge

There are often very good reasons to challenge an unfairly high tax assessment. This is particularly so in New York, where state law does not require a comprehensive reassessment every few years. Either through inertia or deliberate choice, many communities do not adjust property valuations and the accompanying tax bills as often as they should.

As a business owner, challenging an assessment that is too high is only fair -- and makes good business sense. The lack of revaluations for businesses tends to favor residential property owners at the expense of commercial and industrial owners. This may be because values for business property have been more stable in recent years than residential values. That is no reason, however, for businesses being assessed too much.

Remember, you do not have to do this alone or risk throwing money down a hole. An attorney who is experienced in assessment challenges may take the case on a contingent fee arrangement, charging you only a percentage of the money that a successful challenge will save on your bill.

Article provided by Hacker & Murphy LLP
Visit us at www.hackermurphy.com