On January 15, 2021, the New York City Department of Finance released the tentative assessment roll for tax year 2021/22, which values all real property in the city as of January 5, 2021. Commercial property (Class 4) total market value dropped 15.75% citywide, compared to the prior year. Multifamily residential (Class 2) total market value dropped 7.95%.
Luxury hotels saw the biggest drop in value at 25.48% overall. Other property types include store buildings falling 20.95% in value, office buildings falling 15.05%, theaters falling 15.21%, and garages falling 14.75%. The value of any individual property may have fallen more or less than these citywide totals, or even risen.
However, the total value of some property types is even higher than in the prior year. Self-storage, health and education, vacant land, and certain commercial condominium properties rose overall on the assessment roll.
As welcome as these reductions may be, they fall far short of providing for the impact of the coronavirus pandemic on New York City real estate. March 1, 2021 is the deadline for taxpayers to apply to the New York City Tax Commission for reduction in their property’s assessed value.
The subject matter experts at Ryan are available to assist clients with navigating deadlines and minimizing tax liability.
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