Co-op/Condo Tax Abatement Renewed

On February 1st, Governor Cuomo signed legislation extending the Co-op and Condo property tax abatement program. Since 1997, this legislation, which expired last July, was put in place to address the inequities in property taxes between co-ops and condos, which are Class 2 properties in NYC, and single-family homes, townhouses and two-story condominiums, which are Class 1 properties and thus subject to much lower property tax rates.

Only those co-ops and condos used as primary residences are eligible for tax abatements under the new ruling, and abatement amounts vary depending on the assessed valuation of your apartment. Apartments with assessed values of $60,000 (market value of about $600,000) or less will receive that largest tax abatement. The majority of co-op and condo owners will receive a 17.5% abatement on their property taxes. These changes will be reflected on the July, 2013 tax bills.

“I am pleased that this legislation will cut taxes for the vast majority of condo and co-op owners who pay a disproportionate share of the city’s property tax burden,” said Assembly Speaker Sheldon Silver (D-Manhattan).

“While more comprehensive reform is still necessary, this legislation helps to ensure that co-op property taxes are comparable to those of single-family residences,” said Assemblyman Edward C. Braunstein (D-Bayside).

According to Mayor Bloomberg, “This is a relief for more than 360,000 New Yorkers who have been anxious for action since the benefit expired in July. The new and improved program will include more co-op and condo residents, including 98 percent of co-op and condo owners outside of Manhattan, and increase the maximum benefit amount available.”

The benefits are as follows:

Fiscal Year Average Assessed Value of Units Abatement
2012-2013
Less than or equal to $50,000 (market value approx. $500,000) 25.0%
More than $50,000 but less than or equal to $55,000 22.5%
More than $55,000 but less than or equal $60,000 20.0%
More than $60,000 17.5%
2013-2014
Less than or equal to $50,000 26.5%
More than $50,000 but less than or equal to $55,000 23.8%
More than $55,000 but less than or equal $60,000 21.2%
More than $60,000 17.5%
2014-2015
Less than or equal to $50,000 28.1%
More than $50,000 but less than or equal to $55,000 25.2%
More than $55,000 but less than or equal $60,000 22.5%
More than $60,000 17.5%

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s