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RPIE form rules changed deadline extended to Oct. 3.

RPIE form rules changed deadline extended to Oct. 3

In an attempt to make Real Property Income and Expense (RPIE) statement filings easier for property owners, the New York City Department of Finance has made several changes since mailing the forms.

In the beginning of August, the deadline was extended to Oct. 1 from Sept. 3. Forms were late in being mailed to owners because other changes were made while summer vacation schedules were creating havoc for those attempting to put together figures. Last week, after further reflection within the Department, other changes were discussed and a letter was drafted by Commissioner Carol O'Cleireacain which was to be mailed to owners last week.

A decision was made to accept 1991 Tax Commission applications in lieu of the RPIE-91 form, if income and expense information was submitted as well. According to Assistant Commissioner Manuel Pardo, the letter includes an agreement whereby the owner will stipulate that they are the owner and that the Finance Dept. can use the income and expense statement which was filed with the Tax Commission.

"We'll accept filings with the Tax Commission which include income and expense information and have no new information to report," he said. "If they filed 89 number there has really been a change, so they could really file an RPIE because the filing should reflect the most recent numbers." The language in the letter requests the "most up-to-date information," and the owner will be signing a statement that says "I have already submitted the most up-to-date information to the Tax Commission," he said.

While the Department is trying to make it easier, attorneys who reviewed the letter and agreement said they could also create more confusion over what was considered "up to date."

Martha E. Stark, special assistant on tax reform, made it very clear what "up to date" means to Finance. "We'll accept the Tax Commission filing even with 1989 numbers," she said, but warned that the owner may find the assessors recomputing the information themselves.

"Our assessors are very aggressive," she noted. "They will run the risk of the assessor's updating the rents and saying they quadrupled.

"If I were an owner in this market," Stark added, "I would want to give in 1991 information.

"We're trying to make a good faith effort to alleviate the filing requirement and we don't expect the owners to play games with us," Stark cautioned. "They are only going to hurt themselves."

If an owner's rents are lower they should consider filing a new RPIE-91, advised Howard L. Schwartz, a tax certiorari expert in Tuchman, Katz, Schwartz, Gellis & Korngold.

Tax Commission figures are available to the public while RPIE information is not.

Owners can also now file consolidated statements, Pardo said, even though the instructions state the opposite. Certiorari attorneys and owners had complained that it was difficult to split up figures for lots which were operated as one business entity.

In response to other inquiries, apartment building owners may report the costs of major capital improvements and leasing costs in the "additional information" Section 7.

All property owners whose assessed valuation is greater than $40,000 must now file an exclusion, an agreement or a new RPIE-91 by Tuesday, Oct. 1. "We're encouraging people who can file by Sept. 3 to do so," Pardo added, since the assessors must have time use the information in developing the next tentative assessment roll which will be released on Jan. 15, 1992.

Attorneys indicated they do not always file everything a client attaches to his Tax Commission applications and suggested owners should consult with their attorney before filing an agreement or RPIE statement, to determine which figures, if any, were actually submitted to Tax Commission.
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Title Annotation:Real Property Income and Expense
Author:Marshall, Bradley
Publication:Real Estate Weekly
Date:Aug 14, 1991
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