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What You Need to Know About Subdivided Land and Property Taxes in New York

The process of subdividing land and assigning new tax lots in New York can be complex, particularly when it comes to understanding the implications for property taxes.

Subdivision refers to the division of a parcel of land into two or more separate lots. In New York, the process of subdividing land is typically regulated by local municipal authorities, such as planning boards or zoning boards. The subdivision process involves obtaining necessary approvals, complying with zoning regulations, and adhering to specific subdivision requirements set forth by the local municipality.

Upon the subdivision of land, new tax lots are created. Each newly created tax lot is assigned a unique tax identification number by the local tax assessor's office. It is crucial to ensure that the subdivision process is completed accurately and in compliance with all applicable regulations to avoid any issues with the assignment of tax lots and subsequent property tax obligations. If you buy a house that has been constructed on a subdivided lot you want to be sure that it has been assigned a new tax lot number and that you are paying the correct amount of taxes on that new lot. 

Once the new tax lots are created, each lot becomes a separate taxable entity, subject to its own property tax assessment. It is essential to understand the following key points regarding property tax obligations on new tax lots:

  • Tax Assessments: Each newly created tax lot will be assessed individually for property tax purposes. The local tax assessor's office determines the assessed value of each tax lot, which is used to calculate the property tax liability.
  • Assessment Notices: Property owners will receive separate assessment notices for each tax lot. These notices will outline the assessed value of the lot and provide information on the applicable tax rate and any exemptions or abatements that may apply.
  • Payment of Property Taxes: Property owners are responsible for paying property taxes on each tax lot separately. The tax rates and due dates for property tax payments may vary depending on the local municipality.
  • Exemptions and Abatements: Property tax exemptions or abatements that applied to the original parcel of land may not automatically transfer to the new tax lots. Property owners should review the eligibility criteria for exemptions or abatements and apply separately for each tax lot, if applicable.
  • Tax Grievance Process: If property owners believe that the assessed value of a tax lot is incorrect, they have the right to challenge the assessment through the tax grievance process. This process involves filing a formal complaint with the local assessment review board or similar authority.

By ensuring compliance with the subdivision process and staying informed about property tax obligations on new tax lots, potential buyers can navigate the real estate taxes with confidence and avoid inadvertently being subject to a tax lien. It is advisable to consult with a knowledgeable real estate attorney to ensure that all legal requirements are met and to address any specific questions or concerns related to subdivision and property tax obligations on new tax lots at the time of closing. Give us a call at 516-570-4016 if you have any questions.