In all five boroughs of New York City, owners of income-producing property with an actual assessed value of more than $40,000 are required to file an annual Real Property Income and Expense (RPIE) statement each year by June 1. Even if your property is legally excluded from having to file the RPIE, a Claim of Exclusion is still required to be filed by the deadline. For example, if your property is entirely owner-occupied, if it is fully exempt from real estate taxes, if it is vacant or uninhabitable, and has no existing leases, a Claim of Exclusion must still be filed.
The New York City Department of Finance recently released a list of buildings that did not file the required forms by the June 1 deadline. In Manhattan, there were 35 non-filers, with an actual assessed value greater than $10,000,000, with another 2,229 non-filers. Collectively, the four other boroughs had nearly 12,000 non-filers, with a dozen properties assessed at more than $10,000.000.
Penalties for failing to file can be significant.
The penalties are graduated based on the actual assessed value of the property and run from $100 to $100,000. Owners who are required to file a Claim of Exclusion and who do not submit a claim are fined $100. Properties valued between $1,000,000 and $4,999,999 are assessed a penalty of $5,000. For values between $5,000,000 and $9,999,999, the fine is $20,000. Properties valued between $10,000,000 and $14,999,999 receive a fine of $40,000, and properties valued at greater than $25,000,000 are fined $100,000.
Building owners, as well as not-for-profits, are advised to be compliant as it relates to either the RPIE or Claim of Exclusion filing obligation.
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