MARRIOTT COURTYARD AT LAGUARDIA AIRPORT
GAINS TAX CUT IN EXCESS OF $11 MILLION
AFTER COURT CHALLENGE
85 PERCENT REDUCTION COULD LEAD OTHER HOTELS TO CONTEST NYC’S TAX ASSESSMENT SYSTEM
FOR IMMEDIATE RELEASEWEDNEDAY, JUNE 9, 2021
In a decision that could have implications for all New York City hotels, a Queens Court yesterday handed down a ruling that dramatically reduced the property taxes to be paid by the Marriott Courtyard at LaGuardia Airport. The court ordered a reduction of approximately 85 percent of the tax assessment levied against the hotel, covering tax years 2014-2015 through 2018-2019.
The total tax savings for all tax years is in excess of $11 million. The assessment for 2018-2019, was reduced from $25,339,500 to $1,935,000, a refund of $2,460,000 for that year alone.
The ruling followed a trial which began in November 2019 in which Queens Judge Joseph Risi would not accept the appraised values of the 288-room hotel introduced by the City. Instead, Judge Risi relied upon and adopted the market and assessed values presented in the hotel taxpayer’s report.
“Every hotel owner should be cheered by this important decision, which stands for the proposition that you can get a redress and justice through the court system on a property tax challenge.”
— Joel Marcus of Marcus & Pollack LLP, which represented the Queens Marriott Courtyard in the case
The case could have implications for all New York City hotel owners and operators, since the City’s tax assessment system is a pre-pandemic evaluation, and consistently overvalues hotel properties.
Joel Marcus and Philip Azarian of Marcus & Pollack LLP represented the hotel, and Jeffrey Lebowitz of Abrams Fensterman, LLP was co-counsel. Marcus & Pollack are currently planning several other hotel challenges throughout New York City.