Filing Mandatory Income and Expense Statements
In both New York City and the City of Yonkers, owners of income-producing property must file Income and Expense statements. Failing to file these statements could result in penalties.
The New York City Department of Finance requires owners of certain types of income-producing property to file a Real Property Income and Expense statement if the actual assessed value of the property is more than $40,000.00. The Department of Finance uses the information to estimate the market value of the property for tax purposes.
Generally, owners of the following major categories of properties are required to file:
- Rental Properties, includes rental apartment buildings and commercial properties with one or more tenants;
- Cooperatives, properties owned by a corporation that contains over 2,500 square feet of commercial space;
- Condominiums, includes income-producing commercial condominium buildings or rented commercial and /or professional space in residential condominium buildings;
- Business-Operating Properties, includes hotels and motels, parking garages and parking lots that are open to the public, department stores with 10,000 or more square feet of floor area, powers plants providing electricity for sale, and theaters and cinemas;
- Net-Leased Properties, entire properties that are leased by the owner to an entity that pays the taxes and operating expenses.
The NYC Department of Finance advises that even if an owner’s property is exempted from the filing requirement, it may still be in the best interest of the owner to provide the information anyway. Owners may file their Real Property Income and Expense statement electronically with the New York City Department of Finance. The deadline for filing Real Property Income and Expense statements for the 2016-2017 tax year was June 1, 2016.
Failing to timely file a Real Property Income and Expense statement may result in a denial of a Tax Commission hearing to review your property’s assessment for the subsequent tax year. Further, the New York City Department of Finance may substantially increase the owner’s real estate tax assessment for that year. In addition to the above, the New York City Department of Finance is authorized to impose substantial monetary penalties for failure to file a Real Property Income and Expense statement.
In the City of Yonkers, Local Law #9 of 1993 requires a person or entity owning or leasing income-producing property to file an annual, Income and Expense statement with the City of Yonkers Assessment Department. Property owners that receive rental income from various types of property – including apartment houses, garages, commercial and professional condominiums, fueling stations, and rented commercial, and/or professional space in residential condos or cooperative apartments – are subject to filing the Income and Expense form.
Despite this extensive list, certain types of property will not require an Income and Expense statement to be filed. Although a specific property does not require a filing, the property owner must still file an exclusion form.
James G. Dibbini & Associates, P.C., collectively, has over 20 years of experience in real estate law. If you want have any questions about your mandatory filings, or would like our office to prepare and file the statements on your behalf, please call us at (914) 965-1011, or email us at jdibbini@dibbinilaw.com, to schedule a consultation.
