New York's Cooperative and Condominium Community

Habitat Magazine Business of Management 2021

HABITAT

Subscribe for Daily Updates!
When tax abatement credits must be givenApr 26, 2021

By law, credit are supposed to be passed by coops to eligible units within the city's fiscal year when they are given vi a being applied to the coops tax bill.
This is by June 30th of every year. Our coop has been giving them in December - 6 months late.
What can we do about this?

Join the Conversation Comments (1)
When tax abatement credits must be given - Steven424 Apr 28, 2021

Try asking your co-op board about the delay. They may have a perfectly valid reason for waiting until the end of the year. For example, most co-ops approve a one-time assessment in the same amount as the abatement so they can recoup the budget shortfall due to the abatement. Your board may believe you're running a surplus, and are waiting until the end of the year to see if they can impose a lower assessment because of the surplus. That would definitely be to your benefit.

Try asking your board first, and let us know what they say.

--- Steve

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (3)
Legally the cut-off is June 30th to give credits - DM Apr 29, 2021

Hi Steve - I think it does not matter what the Board's reasons are. The cut-off date - legally - is the end of the fiscal year in which the credit was applied to the coop's overall tax bill. That is June 30th of every year. It is the law.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
When tax abatement credits must be given - Steven424 Apr 29, 2021

Hi DM - I understand about the Jun 30th deadline for the credit being applied to the co-op's tax bill, but I've never heard of any deadline for when the abatement must be distributed to shareholders in the form of a maintenance credit.

If you have a link to a website where this is explained I'd appreciate your posting it here. I'd like to read it over and possibly pass it to our MA, who seem blissfully unaware of the deadline's existence.

Thanks!
--- Steve

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
Someone please answer if you know - DM Apr 30, 2021

Steve - Any manager worth their salt knows this.

It is law that the credit must be given within the fiscal year in which it is applied to the coops tax bill. Ex credit given to coop on July 1 bill then credit to eligible shareholders has to be passed on by June 30th of the next year.
You can Google if you need a link.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
Legal requirement? - Steven424 May 01, 2021

Hi DM - I did as you suggested and searched google for a copy of the law requiring the co-op tax abatement be distributed during the fiscal year in which the abatement is applied to the co-op's tax bill. Here is what I found:

"Remember that co-ops are not real property, and the coop corporation receives one property tax bill for the entire building, which it owns. Shareholders have a proprietary lease to occupy their specific apartment, and have shares of stock in the corporation, but are technically tenants of the co-op corporation’s building.

As a result, the managing agent for a co-op will typically receive any tax rebates directly on behalf of all shareholders, and the co-op boards have discretion on how best to distribute the proceeds back to the shareholders."

https://www.hauseit.com/coop-condo-tax-abatement-nyc/

This article seems to be saying that abatement distribution is at the discretion of the co-op board.

Please help me understand where you found the law or administrative code requiring distribution by a certain date, as you stated in your last message.

Thanks!
--- Steve

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
That source is not correct - DM May 01, 2021

Check the law and check with the city. On the Coop annual Tax Property Benefit letter, the city states it must be credited to eligible individuals immediately which has been interpreted to mean by the end of that fiscal year which is June 30th. I am correct about this. They do NOT have the discretion to grant it after that.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
Maybe... Maybe not... - Steven424 May 01, 2021

Hi DM - I went right to the source and read the CO-OP TAX BENEFITS LETTER we received from the DOF. The salient part which I believe you are referring to, states:

"By law, managing agents/coop boards must credit the unit(s) with the benefit amount listed on the enclosed report once it is received. Credits are calculated using the tax rate for the applicable tax year. This report reflects sales or transfers that occurred on or before January 5th of this calendar year. We must receive this form by February 15, 2020."

There's a big difference between "...must credit the unit(s) once the report is received..." and "must immediately credit the unit(s) by a certain date..." There's no need for absolute urgency stated or implied anywhere in the letter.

I'm not trying to give you a hard time here. Your original statement about distributing the abatement credits by a certain date piqued my curiosity because I hadn't heard it before. I'd like to check the law, which is why I asked you for a link to the parts of the law that support your interpretations. If you could post the URL in this thread, we'll all benefit from your research.

--- Steve

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Steve - Pls dont punch holes. Esp if you do not know the answer. - DM May 02, 2021

I did not post so you could punch holes in my email.
I am correct - the coop must credit the eligible units by the end of the city fiscal year in which the credit is applied to the coop's tax bill.
. End of story.
The QUESTION was is what do we do when they disregard the law and delay the credit by 6 months or more each year?
Attorney General's office?

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (2)
Tax abatement credit - Marty May 03, 2021

DM - I've been reading the back and forth responses between you and Steven424.

I can see that you're frustrated by your co-op's inaction. You asked what can you do about the situation. Steven suggested that you speak to your Board and ask them why there is a delay.

Your response to his suggestion is it doesn't matter what the Board's reasons are. Okay. You asked for suggestions, Steven gave you one, and you didn't like it.

He's trying to help. You've been on this site before. You know that Steven is very thorough and tries to understand the situation BEFORE offering any advice.

Don't get angry with him for asking questions and doing research so he can try to help you. Steven is not the type of person to try and punch holes in anyone's email. He genuinely tries to help people and has done so for years on this website, including me.

You might try contacting the DOF and ask them for their interpretation of the law. It couldn't hurt.

I do agree with him that you should contact your Board, but I'd also add that you should do it in writing, thus creating a paper trail. If the Board refuses to answer or gives you an answer that doesn't satisfactorily answer your question, you could then email the co-op's attorney to ask him/her for their opinion.

Good luck.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
Tax abatement credit-DM - peoples choice #1 May 04, 2021

DM this is a forum to help people who can not get answers or who has a question. I also have been reading this back and forth and I give Steven credit for trying to help you. It's seems you really don't want answers to your question. I do feel that you need this abatement money so badly and refuse to go to your managing agent or board for an answer. What ever your reason is. But don't take things out on Steven for going out of his way and researching an answer for you. Just say Thank you and move on Best of Luck

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
When Tax Abatement Credits Must be agiven - NYC May 05, 2021

DM/DP
This is a wonderful site where people freely help each other by sharing their experience and knowledge. I have benefited many times from the responses I have received on this forum and greatly appreciate any and all advice I have received. Apparently you have many issues with your Co-Op board and how your building is run. Your constantly request for " Informed and knowledgeable responses only" is quite annoying and somewhat insulting. Basically what you want is free legal advice and you tend to get snarky if you do not agree with or like the response you receive. Here is some knowledgeable, informed advice...Move.., BTW, there are no units in my Co-op. Steve424, remember Connie? Can you work you magic again? :-). Please no need for a response.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
Please stop the attacks. - DM May 05, 2021

Hi all, I do appreciate Steve's time but he did nit-pick at my use of the word "immediate." Which I did not feel was nice. The overall idea I here to help each other with information and my question was posted with that intent.

The question is not 'why' does a coop choose to pay late illegally. The question is what can people do - what recourses do we have when the law is broke in regards to this? Does anyone know?

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (2)
Please stop the attacks. - DM - peoples choice #1 May 05, 2021

DM- Love the idea of you relocating to another building or better yet join the board.
Maybe you need to educate yourself being you can't take constructive advice. MOVE ON!

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Please stop the Attacks DM - NYC May 05, 2021

DM/DP,
You might as well stop asking the question. I think your time for advice on this site has expired. I can't imagine anyone who would want to help you after this despicable and childish display. Contact the D.O.F. with hour questions unless they are no longer responding to you.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
NYc "Peoples choice"are you all the same person? - DM May 05, 2021

Stop now, please. You are being negative and repetitive.
It is basically now just spam.


Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
NYC People's Choice as.e person - NYC May 05, 2021

DM/DP
You are delusional. I wish I had as much knowledge as People's Choice. Now please take an aspirin and go lie down. You are stating to frighten me.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

Introduce yourself to other members of Board Talk! Log in below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Introduce yourself to other members of Board Talk! Login below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?