Articles & Press Releases

February 02, 2017

HKCC TACKLES BIG BOX VALUATION AGAIN IN NY

HKCC Partners Kevin Clyne and Jennifer Hower litigated the proper methodology to be utilized in valuing big box retail stores for property tax purposes in New York State.  The methodologies have received mix treatment by courts throughout the state. HKCC is forwarding the theory that, due to the law requiring real property be valued free and clear of any leasehold interest, or any other encumbrance on the fee simple value, the courts should look to the rents paid by second generation users of big box space.   The Town, as if often the case,  relied entirely… Read more »

January 27, 2017

New NYC Assessment Roll Released

New York City released its 2017/18 tentative assessments last week. These assessments will be used to determine the taxes due for the fiscal year that begins on July 1, 2017. Class 4 (commercial) and Class 2 (multi-family residential) have seen large assessment increases over the last five years. That trend has continued with this recently released tentative roll. In a press release, the Department of Finance acknowledged these dramatic increases. Class 4 properties, as a group, had their assessments increased by 8.1% over the previous year. Class 2 properties saw an even bigger increase –… Read more »

January 23, 2017

Update On Nassau County Lawsuit

As we indicated in our Memorandum on January 18, we commenced a lawsuit against Nassau County last week.  We sought a temporary restraining order enjoining and restraining the County from collecting any penalty and/or imposing any lien and further enforcing the penalty provisions of the ASIE/Income and Expense Law/Amnesty Program.   The Judge granted our TRO and we will be returning to continue arguing on February 8. We will be in further contact after the next court date or if there are other developments in the interim. If you have any questions, please feel free to… Read more »

January 04, 2017

Nassau County ASIE 2015 Grace Period

We have been advised by the Nassau County Website that a grace period has been opened for filing the 2015 ASIE. As you know, we will be challenging the validity of the law, but until such time as the Courts determine its legality, we suggest that you comply with this Nassau County requirement for each of your properties. The Department of Assessment has opened a grace period for non-filers of ASIE 2015 to avoid penalty. This applies to ASIE non-filers only! You may avoid penalties by submitting and filing a properly-completed electronic form. This grace period… Read more »

November 09, 2016

NASSAU COUNTY TO PURSUE DRACONIAN “PENALTIES” FOR FAILURE TO FILE INCOME AND EXPENSES

You will recall that Nassau County, effective with a Local Law passed in December 2013, requires the filing of “all income derived from and all expenses attributable” to the operation of all commercial property. Non-compliance with this law results in monetary “penalties” (using the County’s term) calculated as a percentage of the property’s assessment, ranging from .25% to .75% of the property’s fair market value as determined by the County, increasing with a continuing failure to file. As we previously advised: (1) this filing requirement has nothing to do with the property tax appeals filed… Read more »

November 07, 2016

New York City Considers New Rules for ICAP Benefits

The Industrial and Commercial Abatement Program (“ICAP”) provides real estate tax benefits for commercial property development within New York City. The program is authorized by State law but managed by the New York City Department of Finance. The City recently issued a proposed set of rules for the ICAP program and the public comment period for those rules has just been completed (Link). The ICAP law went into effect after the sunset of the former ICIP benefit (“Industrial and Commercial Incentive Program”) in 2008. The law authorized the City to adopt rules for the administration of the program… Read more »

October 07, 2016

DAF Law Drives up Tax Rates

Here is a simplified explanation of the special legislation driving your extraordinary 2016/17 real estate tax increases daf-charge-powerpoint-disputed-assessment-fund-00155818xc3f8c

August 16, 2016

Revocation of Real Estate Tax Exemption for the Tax Exempt

Recently, the revocation of exemption from real property tax for certain non-profit organizations has become a topic of much debate in courtrooms and legislatures alike. New York is moving towards a more restrictive application of the real property tax exemption statutes. New York has two statutes that govern the exemption of real property from taxation—New York Real Property Tax Law § 420-a (mandatory exemption) and New York Real Property Tax Law § 420-b (permissive exemption).  In 2015, the Court of Appeals comprehensively examined section 420-a in Greater Jamaica Dev. Corp. v. New York City Tax… Read more »

May 20, 2016

Nassau County Disputed Assessment Fund (DAF)

As a Class 4 commercial taxpayer, you may have recently received notice from the Nassau County Department of Assessment regarding the Disputed Assessment Fund (DAF). See the DAF Frequently Asked Questions, here. The new law will apply to Class 4 Commercial property owners in Nassau County who have challenged their property’s tax assessment for 2016/17. The law essentially requires that a certain percentage of those Class 4 taxpayers’ payments be held in separate accounts pending the resolution of their tax appeal. If the appeal is successful, the refund will be made from the County’s DAF… Read more »

April 12, 2016

When is a sale not the best evidence of value?

When is a sale not the best evidence of value for tax assessment purposes? We cannot tell you the number of times municipalities have refused to resolve a pending tax review proceeding due to a subject property sale. We recently were successful in the Appellate Division, Second Department of the New York State Supreme Court, modifying a trial court’s determination of the value, for property tax assessment purposes, of a golf and country club in Westchester County. The subject property had been sold by the country club to our clients, who were neither golf course… Read more »