Increase the Tax Commission TC309 Accountant Certification Assessment Threshold: Testimony
SUMMARY
The Condemnation and Tax Certiorari Committee testified before the New York City Council Finance Committee in support of legislation proposed by the Committee to modernize Section 11-216 of the New York City Administrative Code. The testimony, delivered by immediate past chair Peter Blond, urged the Council to enact Int. 1038-2018, which would increase the Tax Commission TC309 Accountant Certification assessment threshold from $1 million to $5 million. The $1 million threshold was set in 1973 and has not been raised since, despite dramatic increases in New York City property values, thereby encompassing more and more ordinary property owners than were originally intended. Property owners seeking a reduction or correction in real property assessment by the Tax Commission, where the newly published assessment is $1,000,000 or more, must hire a certified public accountant to audit a statement of income and expenses of the operation of the property for the most recently completed calendar or fiscal year. This is a costly burden for small property owners. The proposed legislation provides an overdue update which will allow ordinary properties to obtain substantive review of their property tax assessments and thereby provide equal protection under the law without the financial burdens currently imposed.
HEARING INFORMATION
New York City Council Committee on Finance Hearing on Int. 1038-2018 – October 4, 2018
REPORT
WRITTEN TESTIMONY OF THE COMMITTEE ON CONDEMNATION & TAX CERTIORARI
NEW YORK CITY COUNCIL COMMITTEE ON FINANCE
HEARING ON INT. 1038-2018
October 4, 2018
My name is Peter Blond and I am the immediate past chair of the Condemnation and Tax Certiorari Committee of the New York City Bar Association. We appreciate that the Committee on Finance has called this hearing to discuss Int. 1038-2018. Our Committee proposed this legislation, which would amend Section 11-216 of the New York City Administrative Code to increase the Tax Commission TC309 Accountant Certification assessment threshold from $1 million to $5 million.
The $1 million threshold was set in 1973, and it should be self-evident that New York City property values have increased greatly during this period, thereby encompassing more and more ordinary property owners in 2018 than were originally intended back in the early 1970’s. The $1 million threshold requires an owner of income-producing property to acquire a statement of income and expenses prepared by an independent CPA just to obtain a substantive hearing, much less an actual assessment reduction.
The submission of the required statement is a costly burden on those owners. CPA’s regularly charge our clients in excess of $10,000 to prepare these full audits in a time frame that affords less time than the Federal and State of New York governments for their returns. Increasing the threshold to $5 million is remedial in nature, and is a necessary step towards guaranteeing increased fairness in the New York City property tax system with respect to income-producing property.
Appended and incorporated as part of this testimony please find the Committee’s report in support of Int. 1038-2018, which further discusses the need for this legislation.
Thank you for your consideration.
Click here for appended report.
