New forms and procedures for tax appeals/exemptions.

Real estate tax appeal forms or "Applications for Correction of Assessment" as they are called by the New York City Tax Commission, will undergo significant changes in 1996 affecting tax appeal compliance requirements for many taxpayers.

The New York City Tax Commission, under the direction of Commissioner Earl Andrews, Jr., who has just concluded his first year as President of the New York City Tax Commission, has undertaken to redesign all of its forms. For the 1996/97 tax year, three totally new Tax Commission forms will be introduced.

For condominium properties, a new form TC 109 (white) has been introduced. This form will replace the traditional "pink" TC 103, which will no longer be utilized by the New York City Tax Commission. In addition to requesting information relative to an applicant, property identification and property description, there will be a new portion of the form which will permit applicants to supply information in support of their estimate of market value. Previously requested information relative to use and occupancy, owner-related space, vacancies and recent sales will, again, be required. This year, the condominium Application for Correction will also elicit information relative to refinancing and appraisals within the prior two-year period.

For cooperatives, new form TC 103CC (white) has been introduced for 1996. This form replaces the previously used pink TC 103CC Cooperative Income and Expense Schedule. The previous practice of attaching the cooperative corporation's latest financial statement in satisfaction of compliance requirements of the Tax Commission will no longer be permitted. The new Cooperative Apartment House Schedule specifically states that the data from the latest financial statement must be presented on the Tax Commission form and that filing a copy of the financial statement is not an acceptable substitute. As in the past, an accountant's certification is not required, even if the actual assessed valuation of the cooperative is in excess of one million dollars.

Form TC 144, "Agents Certificate of Authority and Knowledge", has been introduced for 1996 and is of concern only where an agent signs on behalf of a principal in interest applying for correction of assessment. This form will supplement the attachment of a Power of Attorney to the Application for Correction.

In addition to the introduction of the above forms, there have been a number of minor changes and revisions to other New York City Tax Commission forms. High and low value rental property Applications for Correction, TC 101 (blue) and TC 102 (green), will have additional space for information in support of claimed market value. In all other respects these forms will remain essentially the same. The income and expense schedules to be attached to the Applications for Correction for high and low value rental properties, TC 101 SIE and TC 102 SIE, will now be combined on one form and will be on white paper, not blue or green paper as in the past. There are no changes to the department store/theater income and expense schedules, TC 103 EST, or to the hotel income and expense schedule, TC 103 H, or to the accountant's certification, TC 209 BB, required for income-producing properties in excess of one million dollars.

The above changes and revisions to the forms previously used is part of a two-year project which President Andrews feels is overdue, as changes have not been made to Tax Commission forms in the last 10 years. Andrews has also made it clear to the Tax Review Bar that due to the significant number of appeals, as well as the New York City Tax Commission's limited staff, scheduling of hearings for 1996/97 will essentially mirror the scheduling experienced this past year. Further, the practice of issuing "pre-offers" prior to scheduled hearings will continue in 1996.

Taxpayers are urged to use care in strictly complying with the requirements of the New York City Tax Commission's new forms relative to their real estate tax appeals.

The New York City Department of Finance has also introduced a new form for compliance requirements relative to the Industrial and Commercial Incentive Program (ICIP). The revised two-page "Preliminary Application" for ICIP benefits should be utilized for all new construction and renovation projects qualifying under the Program. Taxpayers should also be aware that the exemption periods for certain qualifying projects have been increased from 12 to 15 years in "regular" areas, and from 22 to 25 years in "special" areas. Further, the ICIP Unit of the Department of Finance is strictly enforcing compliance relative to the filing of Certificates of Continuing Use for all taxpayers who are presently enjoying benefits under the Program.