Matter of Emmons Realty, LLC v Soliman
Attorneys and Parties
Brief Summary
Property tax classification of a vacant, residentially zoned lot in New York City and whether a misclassified building class is a correctable clerical error.
The Supreme Court, Kings County denied the petition and dismissed the CPLR article 78 proceeding, effectively upholding the Department of Finance’s denial of reclassification.
The Appellate Division reversed the Supreme Court’s judgment, annulled the Department of Finance’s September 3, 2021 determination, and granted the application for reassessment and reclassification to tax class one, building class V0.
Under Real Property Tax Law (RPTL) 1802(1)(d) [class one property includes all vacant land in a special assessing unit (New York City) that is zoned residential or adjacent to qualifying residential property, other than in Manhattan], vacant land in Brooklyn zoned R5 must be class one regardless of a commercial overlay. Administrative Code of the City of New York § 11-206 [commissioner may correct any assessment or tax erroneous due to clerical error or error of description] and 19 RCNY former § 53-02(b)(10) [inaccurate building class affecting assessed value is a clerical error or error of description] confirm the misclassification was correctable.
Background
Emmons Realty, LLC applied in May 2021 to the New York City Department of Finance (DOF) to change a Brooklyn vacant lot’s classification from tax class four, building class V1, to tax class one, building class V0, asserting the lot is residentially zoned R5 and thus misclassified. DOF denied the application on September 3, 2021. Emmons Realty commenced a CPLR article 78 proceeding [judicial review mechanism for challenging administrative action] to annul the denial. The Supreme Court, Kings County rejected the petition, and Emmons Realty appealed.
Lower Court Decision
The Supreme Court, Kings County denied the petition and dismissed the proceeding, leaving in place DOF’s denial of reassessment and reclassification.
Appellate Division Reversal
The Appellate Division held the challenge was properly raised via CPLR article 78 and applied the arbitrary and capricious/error of law standard of review. It concluded DOF erred as a matter of law: because the property is a vacant lot zoned R5 in Brooklyn (a special assessing unit outside Manhattan), it must be classified as tax class one under RPTL 1802(1)(d), regardless of any commercial overlay. The court further recognized that an inaccurate building class affecting assessed value constitutes a correctable clerical error under Administrative Code § 11-206 and 19 RCNY former § 53-02(b)(10). It reversed, annulled DOF’s September 3, 2021 determination, and ordered reassessment and reclassification to tax class one, building class V0.
Legal Significance
Reaffirms that in New York City (outside Manhattan), vacant land zoned residential is categorically tax class one under RPTL 1802(1)(d), regardless of commercial overlays, and that misclassification of building class is a correctable clerical error under Administrative Code § 11-206 and 19 RCNY former § 53-02(b)(10). Confirms the availability of CPLR article 78 to challenge such administrative misclassifications.
Vacant, residentially zoned land in NYC outside Manhattan must be classified as tax class one despite commercial overlays; a wrong building class is a correctable clerical error, and an article 78 proceeding is an appropriate vehicle to obtain reclassification.