DALLAS, Sept. 9, 2016 /PRNewswire/ -- 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.
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.
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