A property owner represented by Goldberg Segalla will receive substantial financial relief after a New York State Supreme Court ruling reduced tax assessments on two commercial properties.

Marc W. Brown, co-chair of the firm’s national Business and Commercial Group and a leading real estate tax certiorari attorney, joined the case in 2023 when it became clear the matter would proceed to trial – an uncommon outcome in tax certiorari proceedings. Representing the owner of a shopping plaza and mall, Marc argued that the city had over-assessed the properties in 2020 and 2021. Despite multiple attempts to settle, the city insisted on trial.

Tax certiorari trials typically hinge on expert appraisals. Each side presents a report and testimony from an appraiser, and the court evaluates these in a non-jury setting. In this case, the city attempted to preclude the client’s appraiser from testifying, arguing that his report failed to comply with Uniform Rules for Trial Courts
(Sec. 202.59) and lacked sufficient data to support the capitalization rate used in the income approach.

Marc successfully countered the motion, pointing out that the appraiser’s use of the Korpacz Survey – a widely accepted industry source – was sufficient. He also emphasized the appraiser’s use of the sales comparison approach, which the court found to be based on sound theory and objective data. The court ruled in favor of admitting the appraiser’s report and testimony, a major early win for the client.

At trial, both appraisers agreed the properties were over-assessed. The city had originally assessed the plaza at $7.35 million in both 2020 and 2021, and the mall at $7.68 million in 2021. The client’s appraiser valued the plaza at $6 million and the mall at $5.7 million for both years. The city’s appraiser offered slightly lower valuations than the original assessments but still higher than the client’s figures.

The court rejected both experts’ income capitalization valuations and instead relied on their sales comparison approaches. Exercising its discretion, the court blended the valuations and determined the proper assessments to be $6,971,566 for the mall in 2021, and $6,569,490 and $6,491,391 for the plaza in 2020 and 2021, respectively. The court’s decision leaned more heavily on the client’s appraiser’s findings, resulting in a significant tax refund.

Marc credited the outcome to the extensive preparation of the client’s appraiser and the strategic development of his testimony. “We had an appraiser who did a great job on cross examination – we developed his testimony on direct and helped prepare him for cross,” Marc said. “We worked very hard on crossing the other side, which is what we spent a lot of time doing at trial. Ultimately, we were successful.”

The city appealed, but the Appellate Division, Third Department, affirmed the trial court’s decision, rejecting the argument that the court had abused its discretion in blending the experts’ valuations.

Beyond the immediate financial benefit, the ruling will positively impact the client’s future tax assessments. The case underscores Goldberg Segalla’s readiness to go to trial and the firm’s deep litigation experience in complex valuation disputes.