Syracuse assessor's reclassification of bedroom-by-bedroom rentals draws appeal over higher commercial fees

On Wednesday, Feb. 5, the Syracuse Board of Assessment Review heard an appeal from Imani Cooper after the city reclassified her home from a residential code to commercial lodging (class code 418), a change Cooper said raised her sidewalk and other fees even though she lives at the address and rents individual rooms to roommates.

The issue matters because classification affects local charges beyond the basic tax rate: assessment staff told the board that properties coded 4-18 pay higher sidewalk fees and other commercial charges, and Cooper said the change will increase her sidewalk charge by about $200 when the program is fully implemented.

Cooper told the board she moved into the house in September 2023 and that city staff changed the property's code in 2024. “I have roommates. I live there. So I think it should be a difference if I had a company and I bought houses and then I rented the rooms out and I don't even live nowhere near, then I can understand you changing it to 4-18 and charge me commercial fees,” Cooper said at the hearing. She submitted listings for nearby properties that she said are rented by the bedroom but remain coded as residential and asked why her house was identified first.

Assessment staff told the board the city has been identifying houses rented by the room, especially in the Syracuse University “SU” neighborhood, and reclassifying them to a commercial lodging code when staff can verify room-by-room rentals. Assessment staff said, “As we become aware of houses that are rented by the bedroom in the city, we changed them to a classification code that's a commercial classification code 4-18.” The staff representative acknowledged there are likely other properties the city has not yet reclassified.

Board members and staff clarified how classification affects bills. Staff described the sidewalk charge schedule used by the city: residential sidewalk charges were described as capped near $100 while the commercial sidewalk charge may cap near $300; staff said the full program would result in roughly a $200 difference for Cooper’s property when fully implemented. Cooper provided a profit-and-loss spreadsheet she said shows the rental income does not generate net profit and told the panel she believed the residential classification should remain because she lives at the property.

The board did not make an immediate final ruling. Assessment staff said the city will review Cooper’s submitted comparables and other evidence; the board signaled it would consult counsel on the classification policy and acknowledged both the city’s and homeowner’s points. The assessment office will notify Cooper of the decision by a letter expected in the first week of April.

The hearing highlighted a policy issue that could affect other single-family houses in university neighborhoods where owners rent rooms: the city's practice of reclassifying by verification means owners who live on-site and rent individual rooms can nonetheless face higher commercial fees once staff identifies the rental arrangement. Several board members said the question required legal and policy review before a blanket determination could be made.

Board staff directed both sides’ evidence into the record; no vote or final board action was recorded at the Feb. 5 session on Cooper’s classification. The city assessment office will continue to identify and verify room-by-room rental operations and inform owners of any classification changes.