Tax Restoration
We wanted to take this opportunity to remind you of a change in the way the NYC Department of Finance (DOF) assesses Restored Real Estate Taxes after a particular Owner (the “Entitled Owner”) is no longer eligible for a recognized Exemption. As an example, in the past, if a property was benefitted by a Veteran’s Exemption and the Entitled Owner died (assume for this example that the Entitled Owner was not married), the Veteran’s Exemption benefitting the Property would terminate as of the Entitled Owner’s date of death and DOF, upon being advised of the Entitled Owner’s death, would retroactively assess the Restored Taxes commencing in the tax period in which the date of death occurred.
This assessment practice made it easier for attorneys to determine which party was responsible for the applicable Restored Taxes. Please be advised Department of Finance no longer retroactively assesses Restored Real Estate Taxes. Under the current DOF policy, any Restored Taxes due and owning on a particular property will be assessed in a future tax period. Therefore, if the entitled Owner died on January 1, 2022, DOF would restore the Real Estate taxes from the date of death and assess the Restored Tax amount as part of the 1st, 2nd, 3rd and/or 4th quarter taxes of the 2022/2023 tax year. We would strongly recommend that you pay extra attention to your Tax Searches to identify the projected “Tax Without Exemption” amount whenever you anticipate that your deal will include a Restored Real Estate Taxes so that the appropriate Escrow may be held to ensure that sufficient monies are set aside to pay the future Restored Tax bill when DOF ultimately makes its assessment.
When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.
About the author
Home Abstract Corp. has placed the information on this website as a service to the general public. Use of this website and the information contained thereon does not in any manner constitute legal advice from Home Abstract Corp. to the user. Nothing herein shall serve to create an attorney/client relationship between Home Abstract Corp. and the user. While the information on this site may concern legal issues, it is not intended as legal advice or as a substitute for the particularized advice of your own legal counsel. Anyone seeking specific legal advice or assistance concerning the information available on this website should retain their own attorney for such legal counsel.
This website could include inaccuracies or typographical errors. The materials on this website are not guaranteed to be correct, complete, or up‐to‐date after the date of posting. The articles and information on this website are provided AS-IS; without warranty of any kind, either express or implied.
Each individual document published by Home Abstract Corp. on this website may contain other proprietary notices and copyright information relating to that specific document. Home Abstract Corp. hereby authorizes you to view, store, print and copy any pages within this website solely for your personal information and use and not for resale, re-publication, or further on-line or mass distribution. In consideration of this authorization, you agree that (a) any copy of the information or documents which you make shall retain all copyright and other proprietary notices contained herein and (b) nothing on this website shall be reproduced, sold, or distributed to third parties on-line or by mass mailing without the express written consent of Home Abstract Corp.
Some links within the Home Abstract Corp. website may lead to other sites that we believe may be useful or informative. The Home Abstract Corp. website does not incorporate any materials appearing in such linked sites by reference. These links to third party sites or information are not intended as, and should not be interpreted by you as, constituting or implying our endorsement, sponsorship, or recommendation of the third-party information, products, or services found there. We do not maintain or control these sites and accordingly make no guarantee concerning the accuracy, reliability, or currency of the information found thereon.
