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March 25, 2008
Huge taxation increase - What to do?
I am writing this question on behalf of a good friend of mine who owns a small commercial property on the Clinton Hill/Bed Stuy border off of Fulton Street. Last year, taxes for his commercial property (i.e small parking garage with office) ran in the area of $12,000. This year, they are being raised to $30,000 with no explanation. He is trying to hire a lawywer, but is having difficulty finding someone with experience in this issue to handle his case. The taxation department has reviewed his case already at his request, and does not seem to be budging on the increase. My friend wonders if something fishy is going on, and I have to agree with him. Over the past few years many investors have approached him with offers to buy his property (the building is not what they are after -- obviously it's the land for building coops, or whatever). At any rate, he's never entertained selling, which is why he's wondering if someone is behind the sudden taxation increase (i.e. [getting someone from that office on their payroll) to force his hand into selling. Sounds a bit paranoid, I realize, but stranger things have been known to happen. Anyway, he wants to keep his place, but doesn't want to pay the increase in taxes. I'd appreciate any suggestions or recommendations you might have. Thanks in advance for your help.
Comments
His tax tripled. So what. Everyone's taxes have tripled. He wants to keep his place but doesn't want to pay the increase in taxes? Who does? Hire a lawyer and fight it. It's the american way. His paranoid delusions are crazy.
Posted by: guest at March 25, 2008 4:01 AM
My taxes haven't tripled. In fact, they've gone down.
Posted by: guest at March 25, 2008 9:42 AM
all my property taxes has increase.
Posted by: armchairwarrior at March 25, 2008 10:21 AM
Your friend should check to make sure that the Finance department has the correct information about his income and expenses. If they don't, they impute these numbers, doubtlessly to their favor. Read about it here:
http://www.nyc.gov/html/dof/html/pdf/07pdf/property_sap_rpie_non_filer_policy.pdf
Posted by: guest at March 25, 2008 10:25 AM
Your friend should check to make sure that the Finance department has the correct information about his income and expenses. If they don't, they impute these numbers, doubtlessly to their favor. Read about it here:
http://www.nyc.gov/html/dof/html/pdf/07pdf/property_sap_rpie_non_filer_policy.pdf
Posted by: guest at March 25, 2008 10:27 AM
Was his property recently rezoned?
Posted by: guest at March 25, 2008 10:37 AM
Psycho at 4:01 - so you just pay every bill as-is without questioning it when it comes in the door?
Of course you don't. Stop pretending you do. All this person is doing is investigating to make sure he was charged the accurate amount before he sits down and writes a check for $30K.
It's questioning government that is the "American way". Literally. Um, kind of what the country was founded on. We're not supposed to be ignorant mindless drones.
Posted by: guest at March 25, 2008 10:52 AM
10:27 - I'll print out the information from your link and give it to him. Thanks. It's good material.
10:37 - I do not believe his property has been recently rezoned.
4:01 - I did a comparison on Property Shark and no one else -- not even other commercial properties -- are experiencing the same type of increase.
10:52 - Thanks for your understanding. That was nice to see.
Anyone out there know of a Shark Attorney who can handle this mess?
Thanks.
Posted by: MacD at March 25, 2008 10:58 AM
P.S. To my replay to 4:01 - I meant to say that I did a comparison on Property Shark OF HIS BLOCK and no one else -- not even other commercial properties -- are experiencing the same type of increase.
Posted by: MacD at March 25, 2008 11:05 AM
If no other commercial properties got this increase then definitely fight it.
I'd think use a tax attorney for this. Or a big litigation firm with a division that does taxes.
I googled and found this guy who is focused specifically on NYC taxes:
That one does free evaluations so they can tell you if you have a leg to stand on or what and if they can help you.
Posted by: guest at March 25, 2008 11:08 AM
had a similar problem many yrs ago w/ a multi-family building. I recommend the law offices of Podell, Schwartz, Schechter & Banfiled - 212 883-6500
Posted by: guest at March 25, 2008 2:31 PM
I recommend Stewart Rothman
Seligson, Seligson & Rothman 212-966-5020
Terrific real estate lawyer specializing in litigationn
Posted by: guest at March 25, 2008 3:45 PM
Stop fucking complaining!!!! When you house was going up in value everything was Okie-Dokie! Now you have to pay more taxes you want to moan like a Fucktard!
The What
Someday this war is gonna end....
Posted by: guest at March 25, 2008 7:23 PM
tax increases for commercial properties are phased in much quicker than for residential properties.
Many NYC properties have been undervalued for tax purposes for many years. For instance, the garage your friend has may have a market value of $2M but Dept of Finance has had the market value down as $100k. This is not uncommon. So if they wise up and assess it closer to the real market value the taxes will go through the roof.
What may be of greater concern to your friend is what the increase will be next year and the year after that. Depending on the class of property the increase may be phased in over 5 years. So it may have gone from $12k to $30k this year but that may just be the first phase. It may go to $50k next year and continue until the full market value is taxed.
As someone else mentioned, first make sure the income and expenses, square footage, etc. is proper as they often have incorrect information. Also definitely contact someone who specializes in these tax matter to see what you can get reduced. It may be able to be reduced somewhat but you can bet it's still going to be going up, just maybe not by as much.
Posted by: guest at March 30, 2008 1:33 PM
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