Guidelines

Guidelines

For the first time, the NYC Tax Commission is releasing the guidelines and capitalization rates it adopts each year to aid hearing officers in their review of applications for NYC Real Property Tax assessment correction.  However, we cannot overemphasize that information about the specific property in question and the hearing officer's experience and knowledge take precedence in making determinations on applications for review; the guidelines are only an aid.

The Tax Commission's review of an application for a particular property is based primarily on the information submitted by the applicant, including but not limited to, the income and expenses for that property for the preceding year.  The guidelines aid the hearing officers in comparing a particular property to similarly situated properties in the City for purposes of applying an appropriate capitalization rate and evaluating whether anomalies may exist in the income or expenses reported that require further inquiry, such as extraordinary vacancies or substantial repairs.  Where a valuation is based on estimated income and expense information, the guidelines aid the hearing officer in identifying appropriate comparable properties. 

In addition to the guidelines themselves, the Tax Commission also is providing a ranked listing of sample neighborhoods throughout the City for use in conjunction with the guidelines for residential properties (other than class 1 properties, which are valued based on comparable sales).  The residential guidelines include four sets of ranges of income, expenses and capitalization rates, which overlap.  The rankings are an aid in determining the appropriate range to be applied in a given situation. 

The rankings were derived in 2017 using publicly available demographic information that the Tax Commission believes to be relevant to property values such as household income, rent burden, education information, proximity to public transportation, percentage of residents working, and crime statistics.  The Tax Commission makes NO representation that these rankings are scientifically established, that they are exhaustive or that they are indisputable.  These rankings are for broad comparison purposes only.  Again, information about the specific property in question and the hearing officer's experience and knowledge take precedence in making determinations.

2018-19 Hotel Cap Rates
2018-19 Industrial Citywide
2018-19 Main Loft Office
2018-19 Manhattan Office
2018-19 Manhattan Retail
2018-19 Outer Borough Office
2018-19 Outer Borough Retail
2018-19 Manhattan Residential
2018-19 Department Stores
Neighborhood Rankings