Property Owners Must File RPIE Forms by Sept. 1

Property owners who fail to file the annual Real Property Income and Expense (RPIE) forms with the New York City Department of Taxation and Finance by Sept. 1 will face penalties of up to 3 percent of the actual assessed value of their properties.

Most owners of income-producing properties are required to electronically file an annual RPIE, which the tax department uses to estimate market values of properties for tax assessment purposes.

Starting with this year’s RPIE, owners of income-producing properties, who are not otherwise exempt, who fail to file on time will face a penalty of up to 3 percent of the actual assessed value of their property.

Another new addition to the rules is a rent roll requirement. Owners of income-producing properties with a final 2010/11 actual assessed value of $750,000 or more and leases in place during the reporting period (typically the calendar year 1/1/09-12/31/09) are required to also submit their April 2010 rent roll as part of the Sept. 1 RPIE filing, as well as some disclosures.

For commercial properties, those disclosures include:

• the tenant’s name;
• the tenant’s employer identification number;
• floor number or range;
• rentable square footage;
• primary use;
• lease start date and term;
• current rent;
• electrical charges;
• pass-through charges;
• next step-up date; and
• rent after step-up.

For residential properties, the disclosures should include:

• the number of regulated apartments;
• the total rent for regulated apartments;
• the number of unregulated apartments;
• the total rent for unregulated apartments;
• pass-through charges;
• average rentable square footage;
• the number of one-year leases; and
• the number of two-year leases.

For more detailed information on both the new penalties and rent roll requirements, as well as instructions and frequently asked questions, visit thr website of the New York State Department of Taxation and Finance.