Real Estate Tax Appeals &
Assessment Challenges
Every property owner in New York State has the legal right to challenge their property’s assessed value. Understanding the process — its deadlines, its procedures, and its options — is the first step toward paying only what you fairly owe.
New York’s property tax system is administered locally, with each of the state’s roughly 1,000 assessing units responsible for setting values annually. Assessors use mass appraisal techniques that inevitably produce errors — properties assessed above market value, income data that doesn’t reflect actual performance, or values that haven’t kept pace with market corrections. The law provides a structured path to correct these errors, but that path is governed by strict statutory deadlines that cannot be extended or waived.
This guide walks through every stage of the challenge process under New York Real Property Tax Law (RPTL) — from identifying an over-assessment to pursuing judicial review in State Supreme Court.
Attorney Advertising: The information on this page is educational and general in nature. Property tax law is highly jurisdiction-specific. Deadlines, procedures, and eligibility rules vary by municipality. Contact Duffy & Catlin for advice specific to your property and location.
How Properties Are Assessed in New York
In New York State, property is assessed annually by a local assessor — a municipal official appointed or elected in each of the roughly 1,000 assessing units across the state. Unlike some states with centralized assessment, New York’s system is highly decentralized: your assessor, your timeline, and your procedures are all determined by your specific municipality.
The assessor determines your property’s assessed value — which may be expressed as a percentage of full market value, known as the level of assessment. In municipalities that assess at 100% of market value, the assessed value and estimated market value are the same. In others, the assessed value may be a fixed fraction (e.g., 18% of market value in the Town of Amherst, as of recent rolls).
The New York State Office of Real Property Tax Services (ORPTS), a division of the Department of Taxation and Finance, provides oversight, guidance, and equalization services. ORPTS calculates an equalization rate for each municipality — the ratio of total assessed value to total estimated market value — which is used to apportion county and school district taxes fairly across municipalities with different assessment levels.
What is an equalization rate? If a town’s equalization rate is 85%, it means the assessor is valuing properties at roughly 85 cents on the dollar relative to full market value. When county levies are distributed, your town’s share is adjusted upward accordingly — meaning a low equalization rate can still result in higher effective tax burdens than a properly equalized municipality.
Identifying an Over-Assessment
An assessment can be wrong in three distinct ways under New York law. Each provides independent grounds for a challenge.
Excessive Assessment
Your property’s assessed value is higher than its actual market value (or higher than the assessor’s own level of assessment would produce). This is the most common basis for challenge. RPTL §524 permits grievance on this ground.
Unequal Assessment
Your property is assessed at a higher percentage of market value than other properties in your municipality — meaning you’re carrying a disproportionate share of the tax burden, even if your assessed value isn’t above market. This requires comparing your effective assessment ratio to the municipality’s stated LOA or equalization rate.
Illegal Assessment
The assessment is void for a legal defect — for example, the property is exempt from taxation (charitable, religious, governmental), was assessed under the wrong ownership, or the assessor lacked jurisdiction. Illegal assessments may be challenged without first going through administrative review in some cases.
How to Check If You May Be Over-Assessed
- Look up your property’s assessed value on your municipality’s tentative assessment roll (usually available online or at the assessor’s office each May 1).
- Find your municipality’s equalization rate on the ORPTS website. Divide your assessed value by the equalization rate to calculate the implied market value the assessor has assigned to your property.
- Compare that implied value to recent arm’s-length sales of comparable properties in your area. If comparable properties have sold for less, you likely have grounds for challenge.
- For commercial and income-producing properties, compare the assessor’s implied market value to a value derived from your actual net operating income and a market capitalization rate. Assessors often rely on outdated income figures or understate vacancy and expenses.
- Review the assessor’s property record card — available at the assessor’s office — for factual errors: incorrect square footage, number of units, lot size, age, or condition classification. Any factual error that inflates value is correctable.
- Do not wait for your tax bill. Your challenge window opens — and closes — based on the tentative assessment roll and Grievance Day, not when bills arrive.
The Implied Value Calculation: If your assessed value is $180,000 and your municipality’s equalization rate is 72%, the assessor is implying your property is worth $180,000 ÷ 0.72 = $250,000. If comparable sales show your property is actually worth $200,000, you are over-assessed by 25% and have strong grounds for a reduction.
Look up your property record card through your local assessor’s office or via ORPTS sales data. Errors in physical characteristics — room count, gross living area, basement finish — are common and can overstate value by thousands of dollars.
Step One: Administrative Review (The Grievance Process)
Before any property owner in New York can seek court review of an assessment, they must first exhaust administrative remedies by filing a formal grievance. This is both a legal prerequisite and an opportunity to resolve the matter without litigation.
Filing Form RP-524
The grievance process begins by completing and submitting Form RP-524, the “Complaint on Real Property Assessment.” This is the official ORPTS form required for all administrative grievances in New York. It must be filed with your local Board of Assessment Review (BAR) — not the assessor — on or before Grievance Day.
Form RP-524 requires you to state the grounds for your complaint (excessive, unequal, or illegal), provide your estimate of the property’s correct value, and attach supporting evidence. The form is available directly from ORPTS (PDF).
The Board of Assessment Review (BAR)
The BAR is a quasi-judicial body composed of municipal appointees — typically three to five members — who are empowered to reduce (but not increase) assessed values. The BAR reviews evidence submitted with your grievance, may schedule a hearing, and must render a written determination.
Hearings before the BAR are informal. You may present comparable sales, an independent appraisal, income and expense data for commercial properties, or simply point to errors on the property record card. Legal representation is permitted but not required at this stage.
Important: Filing before the BAR is a mandatory prerequisite to judicial review. A court will dismiss an Article 7 petition if no timely grievance was filed. There are very narrow exceptions for illegal assessments — but never rely on them without consulting an attorney.
What the BAR Can Do
- Reduce the assessed value based on evidence of market value below the assessed amount
- Correct factual errors in the assessment (wrong square footage, condition, etc.)
- Grant an exemption or partial exemption if one was improperly denied
- Issue a written decision within a specified period after Grievance Day
What the BAR Cannot Do
- Increase your assessed value above what the assessor set
- Adjudicate complex valuation disputes — those require judicial review
- Grant relief retroactively for prior tax years
After the BAR Decision
If the BAR grants a reduction, the assessor must update the assessment roll. If the BAR denies your grievance — or if you believe the reduction offered is insufficient — you may proceed to judicial review (SCAR or Article 7). You have 30 days from the date of the final assessment roll to initiate SCAR, and 30 days from the final roll (or the mailing of the BAR decision, if later) to file an Article 7 petition.
Small Claims Assessment Review (SCAR)
SCAR is a streamlined, low-cost judicial process established under RPTL Article 7, §730 specifically for residential owner-occupants. It provides access to judicial review without requiring full litigation.
Who Can Use SCAR?
SCAR is available to owners of one-, two-, or three-family residential property who occupy the property as their primary residence. Condominiums and cooperative apartments are also eligible in many cases. Owners of commercial, industrial, or investment properties — including rentals of four units or more — must use the Article 7 proceeding instead.
Filing the SCAR Petition
A SCAR petition is filed with the local Supreme Court in the county where the property is located. The petition form, Form RP-730, requires basic information about the property, the assessed value, your estimated value, and the evidence you intend to rely upon. A filing fee — typically $30 — applies.
Petitions must be filed within 30 days of the filing of the final assessment roll. Check your county court’s specific rules, as administrative requirements vary slightly.
Filing deadlines for SCAR are strict. Courts have dismissed timely-filed grievances where the SCAR petition was filed even one day late. If you are approaching the deadline, call us or contact the court immediately.
The SCAR Hearing
SCAR hearings are conducted before an appointed hearing officer — typically an attorney or retired judge — in an informal setting. You do not need legal representation, though you may have an attorney present. The municipality’s assessor (or their attorney) will appear on the other side.
Evidence you may present includes:
- Recent sales of comparable properties with a brief explanation of similarities and differences
- A professional appraisal (not required, but persuasive)
- Listing history, purchase price, or market analysis from a real estate agent
- Photographs showing condition issues not reflected in the assessment
- Contractor estimates for needed repairs
SCAR Outcomes
The hearing officer issues a written determination. If the officer finds the assessment excessive, they will direct a reduction. SCAR determinations are final — there is no further appeal — but they only apply to the tax year at issue. You must re-file each year to protect against future over-assessments. Any reduction applies to school taxes issued in late summer and county taxes issued the following January.
Article 7 Tax Certiorari: Judicial Review in State Supreme Court
For commercial, industrial, mixed-use, and high-value properties — or whenever SCAR is unavailable or insufficient — RPTL Article 7 provides the path to full judicial review before a State Supreme Court justice.
File the Petition
An Article 7 petition is filed in the Supreme Court of the county where the property is located, within 30 days of the filing of the final assessment roll. The petition identifies the property, states the grounds for review, and alleges the correct value. Filing fees apply and vary by county.
Discovery & Valuation
Both sides exchange valuation evidence. For commercial properties this typically involves certified appraisals from licensed MAI appraisers, income and expense statements, rent rolls, lease abstracts, and market data. The municipality files its own appraisal defending the assessed value.
Negotiation & Settlement
The majority of Article 7 cases resolve through stipulated settlement — a negotiated reduction agreed to by the property owner and the municipality (assessor, county attorney, or school district counsel). Settlements are cost-effective and avoid trial risk. Duffy & Catlin handle all negotiations directly.
Trial (If Necessary)
If no settlement is reached, the case proceeds to a non-jury trial before a Supreme Court justice. Expert witnesses — typically the appraisers for each side — testify and are cross-examined. The court renders a written decision establishing the correct assessed value.
Multi-Year Proceedings & Refunds
Article 7 petitions are typically filed each year while the proceeding is pending — creating a series of petitions covering multiple tax years. When a settlement or judgment is reached, it often resolves all open years simultaneously, with the municipality issuing a refund (plus statutory interest at 9% per annum under RPTL §726) for all excess taxes paid during that period. For commercial properties, multi-year refunds can be substantial.
Refunds may require approval of the municipality’s governing body (town board, city council, etc.) and are paid from the general fund. School district refunds require separate proceedings under RPTL §727 in some circumstances.
Who Should File Article 7?
- Owners of commercial, retail, office, or industrial properties of any size
- Owners of rental properties with four or more units
- High-value residential property owners where SCAR is available but the stakes justify full litigation
- Any owner whose SCAR petition was denied and who believes the determination was erroneous (Article 7 runs concurrently in some cases)
- Owners who received an inadequate BAR determination and want full judicial consideration of valuation evidence
Deadlines by Municipality Type
New York’s property tax calendar is highly variable. Missing any of these deadlines forfeits your rights for that tax year — with no exceptions and no extensions.
| Municipality Type | Tentative Roll Published | Grievance Day | Final Roll Filed | SCAR / Art. 7 Petition Deadline |
|---|---|---|---|---|
| Most New York Towns | May 1 | 4th Tuesday in May | July 1 | 30 days after final roll |
| City of Buffalo | December 1 | 3rd Tuesday in January | Follows BAR determination | 30 days after final roll |
| City of Rochester | May 1 | 3rd Tuesday in May | July 1 | 30 days after final roll |
| City of Syracuse | March 1 | 3rd Tuesday in April | Follows BAR determination | 30 days after final roll |
| City of Yonkers | January 1 | 3rd Tuesday in February | Follows BAR determination | 30 days after final roll |
| New York City | January 15 | March 1 (Tax Commission) | May 25 | Varies — NYC Tax Commission |
| Nassau County | January 2 | March 1 (Assessment Review Commission) | April 1 | Varies — Nassau ARC |
| Westchester County Towns | June 1 | 3rd Tuesday in June | September 1 | 30 days after final roll |
These dates are illustrative. Dates shift annually, and many cities have unique charter provisions that override state defaults. Always verify the exact Grievance Day for your specific municipality before assuming the above applies. Contact us or check directly with your local assessor’s office or at ORPTS’s grievance guidance page.
Valuation Approaches: How Value is Determined
New York courts and assessors recognize three accepted approaches to value. For each property type, one or more approaches will be most probative.
Sales Comparison
The most common approach for residential properties. Recent arm’s-length sales of comparable properties are analyzed and adjusted for differences in size, condition, location, age, and amenities to arrive at an indicated value for the subject property. Comparable sales must be arm’s-length — not foreclosures, related-party transfers, or distress sales — and typically must be within 12–24 months of the valuation date.
Most applicable to: single-family homes, small residential properties, vacant land.
Income Capitalization
The standard approach for income-producing commercial and investment properties. Actual or market-derived net operating income (NOI) is divided by a market capitalization rate to produce an indicated value. Assessors frequently use inflated income projections, understated vacancy and credit loss, and cap rates that don’t reflect current market conditions — all of which overstate value. Challenging each input is central to a strong commercial case.
Most applicable to: office, retail, industrial, multifamily (5+ units), hotels, senior living.
Cost Approach
Estimates value as the cost to reproduce or replace the improvements, less depreciation (physical, functional, and external), plus land value. Most useful for special-use properties with few comparable sales and limited income data. Depreciation analysis — particularly external (economic) obsolescence — can significantly reduce indicated value for aging industrial facilities or properties in areas with soft demand.
Most applicable to: schools, churches, hospitals, special-use industrial, new construction.
The Role of the MAI Appraisal
In Article 7 proceedings, both parties typically submit certified appraisals prepared by MAI-designated appraisers (Members of the Appraisal Institute). New York courts require that appraisal reports comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and include a certification under CPLR §2106. Courts give substantial weight to the relative quality and rigor of competing appraisals.
For SCAR proceedings, a full MAI appraisal is not required — but even a brief written analysis by a licensed real estate appraiser or a well-documented sales grid can be persuasive. Hearing officers are experienced in evaluating informal evidence and will typically give more weight to a clear, documented comparable sales analysis than to an unsupported owner estimate.
Capitalization Rate Disputes: In commercial Article 7 cases, the spread between the petitioner’s and respondent’s capitalization rates is often the most contested issue. A difference of 50 basis points on a property generating $500,000 in NOI can produce a value difference exceeding $1 million. Selecting and defending a market-supported cap rate requires current market data from credible sources such as CBRE, CoStar, or published transaction surveys.
Building Your Case: Evidence & Documentation
The strength of a property tax challenge depends almost entirely on evidence. Here’s what to gather — and how to use it.
For Residential Properties
- Your property record card — Request it from the assessor’s office. Verify every field: lot size, gross living area, number of rooms and bathrooms, basement finish, garage, HVAC type. Errors here directly inflate the assessed value.
- Recent comparable sales — Use your county’s real property transfer records (often searchable via the county clerk or assessor’s website) or sites like Zillow and Realtor.com as starting points, then verify with official records.
- Your purchase price — If you purchased the property within the past two to three years in an arm’s-length transaction, your purchase price is highly probative evidence of market value and is entitled to significant weight by New York courts.
- Listing history & price reductions — A property listed for sale at a price below its assessed value — or a property that failed to sell at the assessed value — is compelling evidence.
- Condition documentation — Photographs of deferred maintenance, structural issues, water damage, dated systems, and other defects that the mass appraisal system won’t capture. Contractor estimates for remediation are useful supplements.
- An independent appraisal — Not required for SCAR but highly valuable in close cases and essential for Article 7.
For Commercial & Income Properties
- Certified rent roll — Actual in-place rents for all occupied units or suites, with lease commencement and expiration dates, base rent, and any rent concessions or abatements.
- Two to three years of income and expense statements — Operating statements showing gross revenue, vacancy, operating expenses (property taxes, insurance, utilities, repairs, management fees), and net operating income. For GAAP-reporting entities, certified financial statements are preferred.
- Lease abstracts — For major commercial tenants, key lease terms including base rent schedule, renewal options, tenant improvement allowances, and expense reimbursement structures (gross, modified gross, NNN) affect both income and value.
- Market vacancy data — Published vacancy reports from CBRE, JLL, Cushman & Wakefield, or local brokers for your property’s submarket. Above-market vacancy rates depress value and are often not reflected in assessors’ income projections.
- Recent comparable sales — Sales of similar commercial properties, ideally within 24 months and your submarket. CoStar and LoopNet are useful starting points; your attorney or appraiser will verify and adjust.
- Environmental or remediation issues — Phase I or Phase II ESA reports, any EPA or DEC notices, and cost estimates for known contamination. Stigma and remediation costs reduce value and are rarely captured in assessments.
Official State Resources & Forms
The following resources are maintained by New York State agencies and courts. Bookmark what’s relevant to your situation.
Frequently Asked Questions
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