While many businesses owners are already aware of these facts. What some county officials seem to have overlooked that NYS is damaging business income with its business restricting rules; they have reduced the value of the real property in most counties in the state as calculated by income and expense model of commercial property tax assessment. This does NOT apply to agricultural property which should be assessed at its' agricultural value.
Unlike private home tax challenges which an individual can handle and are explained here https://www.divideny.org/challenge-your-assessment.html . Commercial property tax challenges require each business/landlord to ask the accountant that does their business taxes to do a few more calculations at income tax time. In New York City - complaints must be filed by March 15 for Class One properties and March 1 for all other properties; in Nassau County - complaints must be filed by March 1 so you may have to use the previous years income taxes.
If the business rents its business space it should try to make an agreement with the landlord to help the property owner reduce his/her property taxes for a lower rent. Many businesses can share the same attorney to file the multiple commercial property tax challenges before the spring Grievance Day to reduce their September 2022 and January 2023 property taxes. Hopefully enough businesses will take action so that it becomes too expensive for the state to reimpose these shutdown rules in the future.
Unlike private home tax challenges which an individual can handle and are explained here https://www.divideny.org/challenge-your-assessment.html . Commercial property tax challenges require each business/landlord to ask the accountant that does their business taxes to do a few more calculations at income tax time. In New York City - complaints must be filed by March 15 for Class One properties and March 1 for all other properties; in Nassau County - complaints must be filed by March 1 so you may have to use the previous years income taxes.
If the business rents its business space it should try to make an agreement with the landlord to help the property owner reduce his/her property taxes for a lower rent. Many businesses can share the same attorney to file the multiple commercial property tax challenges before the spring Grievance Day to reduce their September 2022 and January 2023 property taxes. Hopefully enough businesses will take action so that it becomes too expensive for the state to reimpose these shutdown rules in the future.
Most businesses in New York State are over assessed for property taxes even through town/city/villages are assessed at less than market value so an accurate business property tax assessment should be a certain percentage below full market value. Here is how Equalization works.
Equalization rate formula
An equalization rate is New York State's measure of a municipality's level of assessment.
Total assessed value of the municipality ÷ total market value of the municipality = Equalization rate
Equalization rates are percentages: Examples
Equalization rate = 100:
Here is how to contest a non-residential property assessment https://www.tax.ny.gov/pit/property/contest/contestasmt.htm
Equalization rate formula
An equalization rate is New York State's measure of a municipality's level of assessment.
Total assessed value of the municipality ÷ total market value of the municipality = Equalization rate
Equalization rates are percentages: Examples
Equalization rate = 100:
- town is assessing property at 100% of market value
- most likely a reassessment was conducted in recent years
- your property's assessment should be roughly its market value (the price for which you could sell your property)
- overall property in the town is assessed less than market value
- the lower the equalization rate, the longer it has probably been since the last reassessment
- equalization rate of 43 means overall property in the town is assessed at 43% of market value
- overall property in the town is assessed higher than market value
- property values may have decreased since the last reassessment, but assessments were not adjusted downward
- Greater 100 percent that means your whole town/city/village is over assessed at more than 100 percent full market value which is unlawful in NY. However, the only method available to force a municipality to obey the law and reduce everyone’s assessment down to full market value is an action in New York State Supreme Court. (a trial court in NY).
Here is how to contest a non-residential property assessment https://www.tax.ny.gov/pit/property/contest/contestasmt.htm