§ 4-11 Proving Market Value.
RCNY § 4-11
(a)Sale of the subject property.
(1)The price at which a property sold in a recent arm's-length transaction between a willing buyer and seller on the open market, if not shown to be abnormal, is significant evidence of the value of the property.
(2)Applicants shall report the fact and details of any of the following transactions concerning the property under review occurring within a two-year period preceding the tax status date, January 5, and thereafter until an application is determined or an offer is accepted, whichever occurs later: any transfer of the property under review, any transfer of an ownership interest in the property, and the execution of a contract to transfer the property.
(i)An application that fails to report the fact and details of a transaction concerning the property that occurred before filing shall be denied review.
(ii)Failure to report a transaction concerning the property that occurs after filing an application and before determination of the application while the application is pending for determination shall result in denial of review.
(iii)Failure to report a transaction concerning the property that occurs after a hearing and before an offer is accepted shall result in withdrawal or revocation of an offer.
(3)Applicants shall report the fact and details of any net lease of the property under review in effect when an application is filed, when any such net lease is negotiated or executed while the application is pending for determination, or when an offer is accepted. Failure to report on a net lease shall result in denial of review or confirmation of the assessment if review preceded the execution of the net lease or the report.
(4)Applicants shall report details about a transfer of the property under review on the form prescribed for that purpose. The details required by such form may include, but shall not be limited to, whether the sale was an arm's-length transaction between unrelated persons, whether the sale was made without economic duress, and other aspects of the consideration and circumstances of the sale.
(5)In reporting a transfer of the property under review, applicants may be required to submit a copy of a closing statement in sufficient detail to permit identification of the principals, the total consideration paid, whether by cash or assumption of mortgages or other liabilities such as unpaid taxes, and such other information deemed necessary by the Tax Commission.
(b)Sales approach.
(6)Sales shall be offered as evidence only upon personal knowledge or belief in good faith that the properties are comparable. If no recent comparable sales exist, other recent sales may be offered with reasonable adjustments for differences that are identified.
(c)Income approach.
(7)For residential condominium units, documentary evidence of rental income, if any, such as signed leases and copies of rent checks, shall be provided.
(8)The Tax Commission may rely on the income approach for properties used as hotels, motels, retail department stores, parking sites, and theaters.
(d)Cost approach.
(e)The hearing officer may consider any reasonable valuation approach or a combination of approaches in determining value.
(f)The hearing officer may: (1) cause the person verifying the application or another person with personal knowledge to appear; (2) take testimony under oath; (3) require the applicant to produce for examination such books, records and documents upon which the application is based; and (4) visit and inspect the property.
(g)The hearing officer may upon notice to the representative or self-represented applicant require submission at or after a hearing additional information, including without limitation statements, documents, records, or photographs, that the hearing officer considers material to determine the application.
(h)All testimony at a hearing shall be given under oath. All written information and documents offered by representatives and self-represented applicants for consideration at a hearing, or on review without a hearing, shall be authenticated upon personal knowledge.
(j)If the property is occupied, in whole or part, by the applicant or a related entity, the applicant shall so state.
(k)If the applicant is a lessee, the applicant shall upon request of the hearing officer provide a copy of the lease or memorandum of lease and shall certify the nature of the relation, if any, between the parties to the lease.
(l)If the applicant's claim concerns valuation of a new building or an alteration of an existing improvement, the applicant shall provide copies of contracts, cancelled checks or other documentary evidence of all costs of construction or alteration. The applicant shall state if any exemption application is pending or contemplated.
(m)If the applicant's claim rests on a judgment of foreclosure, the applicant shall present evidence of the foreclosure, unpaid balance of mortgage, if any, and all other pertinent information.
(n)If the applicant's claim rests on an adjudication of bankruptcy, the applicant shall present evidence of such adjudication and all other pertinent information.
(o)If the applicant's claim rests on a change of law, the applicant shall provide a statement of the law and authorities substantiating the claim.
(p)If the applicant's claim rests on demolition of or physical damage to the property, the applicant shall upon request of the hearing officer present evidence of the type and extent of damage, the type and extent of insurance coverage, governmental assistance for which the applicant has applied or will apply, litigation to recover for such damage that the applicant has commenced or will commence, existing tenancies, if any, and plans to repair, renovate or reconstruct the property.
