Penalties Imposed for Late Filed RPIE Statements
The New York City Department of Finance (DOF) requires owners of income-producing properties that have actual assessed values greater than $40,000 to file annual Real Property Income and Expense (RPIE) statements. Types of properties that are generally subject to RPIE filing requirements include rental properties, cooperatives, income producing commercial condominiums, business-operating properties and net leased properties. Filings must be performed electronically unless a waiver is granted by DOF.
These statements are used by the City to estimate the market value of real property for tax purposes. The filing deadline for the RPIE statement falls on the September following the end of the preceding tax year. Non-filers and late-filers are subject to a hefty penalty of three to five percent of the property's final actual assessed value. The penalties are imposed in the tax records and are liens on the property.
The DOF has not been diligent in enforcing these penalties however. In November, 2012, the DOF began imposing penalties for the 2010 RPIE statements. One unfortunate consequence of this two-year delay, has been the imposition of RPIE penalties against property owners who were not the owners of the property at the time the RPIE statements were due.
If you have any questions or would like further information regarding any of the articles in this newsletter, please contact Keith Eng, Esq. ([email protected]) or Anthony Chiellino ([email protected]) at (212) 651-1200.
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