Frank Lovece in Legal/Financial on January 28, 2013
Jan. 28, 2013 — The New York State Assembly, in the wake of the Senate last week, has restored the expired tax abatement that was created with the intent of equalizing tax burdens between co-op / condo owners and standard homeowners. Assemblyman Edward C. Braunstein (D-Bayside) and Senator Toby Ann Stavisky (D-Flushing) announced today the passage of the legislation.
“Since my tenure in the Assembly began in 2011, I have fought to reduce the outrageously high and inequitable property tax assessments levied on many of our middle-class co-ops in the outer boroughs,” said Braunstein. “This is a major victory for the vast majority of co-op owners in Northeast Queens, including thousands of senior citizens on fixed-incomes. This progressive legislation ends the tax abatement for investors and those who are not using their properties as their primary residence, and transfers the cost savings to our middle-class families and seniors so that they can afford to stay in their homes.”
“Every four years, New York State has extended a program granting most New York City co-ops and condo owners a 17.5% abatement on their property taxes, in an attempt to make the tax rates more commensurate with those of single-family homeowners," he added. "For many co-op owners, especially those in Northeast Queens who were hit with monstrous tax hikes over the last two years, this program did not accomplish its goal. 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.”
Wholesale Revision Still Needed
"Passage of the legislation is the culmination of a long, hard fight for fairness and equity,” said Stavisky. “For the past 15 years, the City of New York has been providing tax abatements to co-op and condos, in order to address the disparity between property taxes paid by owners of co-ops and private homes. While what is really needed is wholesale revision and reform of the classification system, the abatement we passed in Albany remedies the inequities. In fact, the abatement will increase for most Queens' co-ops because it is based on progressive property tax assessments."
She added, "I want to thank the advocates who contacted the legislature. They came to rallies in Queens and City Hall, contacted their legislators and held many forums. We can now focus our efforts on reforming the way co-ops and condos are assessed."
Warren Schreiber, president of the Bay Terrace Community Alliance and co-president of the Presidents Co-op & Condo Council said in a statement that, “Renewal of the co-op/condo property tax and J-51 abatements will allow hundreds of thousands of New Yorkers to continue to enjoy affordable housing,” said “Without the abatements, financially struggling families may have been forced out of their homes. I want to thank the Albany lawmakers for their unwavering support of the co-op/condo community.”
Under the legislation:
The benefit schedule for units that received the abatement in fiscal year two thousand twelve, but which are located in a property that does not contain a unit that is the primary residence of the owner of such units is as follows:
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