The New York City Department of Finance has established new charges that will appear on the 2011/2012 NYC DOF tax system. The three new charges are the "RPIE, TAX COMM, and the HSRD REINSP". These charges may be reported on tax searches. RPIE – The Real Property Income and Expense charge is a penalty for failing to file the required annual Real Property Income and Expense report prior to Sept. 1. TAX COMM – The Tax Commission charge is a fee for assessment protests or grievances on real property with a total assessed value of $2,000,000 or more. HSRD RENSP The Hazardous Violation Re-inspection charge is applied when a hazardous condition is not corrected or when the building department receives no response to correct the hazardous condition.
Gift Tax / Federal Tax Liens: Recent developments could have a very big impact on clients "gifting" premises. In an article appearing in the Wall Street Journal the author points out that the IRS has already received "land records" from New York State, as well as other states, in an effort to collect unpaid gift taxes on taxable land transfers. The implication that a potential gift tax liability might be discoverable from an examination of the land records (without the necessity of a lien filing) should be considered.
Abandonment of Easements: In 1966, the Plaintiff's predecessor in title granted an easement to General Motors Corp. ("GM"), the Defendant's predecessor in title, to allow GM to use a railroad spur track running from the Long Island Railroad's Main Line over the Plaintiff's property to what is now the Defendant's property. The Supreme Court, Nassau County, held that the easement was "invalid, unenforceable and extinguished." Although an easement by grant is not extinguished merely by non-use, an easement can be deemed extinguished if it is abandoned. "The acts claimed to constituted an abandonment must show a destruction of the easement, impossibility of its legitimate use resulting from some act of the easement owner or other unequivocal conduct revealing the intention permanently to abandon and surrender the easements." Among other facts recited in the opinion, the construction in 1996, by the then owner of the property benefitted by the easement, and its affiliated entities, of a four foot high retaining wall and a four foot high barbed wire topped fence directly across the mouth of the easement was "clear and convincing evidence of defendant's unequivocal intention to abandon the easement."
Cascelta Company LLC v. Ajda, LLC, decided July 22, 2011, is reported at 2011 WL 3444556. (From Current Developments published by FATICO, November 1, 2011)
The NYC Tax Commission has adopted a rule imposing a $175.00 fee on applications for correction (tax grievance) where the assessed value on the Notice of Property Value for 2011/2012 is $2 Million or more. If multiple condominium units file on a single application, the fee will apply if the aggregate of assessed value is $2 million or more. If any fee is unpaid, review of your application may be denied and any offer of correction revoked.