Co-op Tax Abatement - The Features Of The Recent NY Property Tax Law AmendmentA recent amendment to New York's real estate/property tax law has made condominium and co-op tax abatement available to their owners. This amendment has redressed a well known disparity between property taxes paid by condominium and co-op owners and those paid by other categories of homeowners in New York. As per the amendment, condominiums and co-ops assessed for a value equal to $15,000.00 or less, are eligible to receive tax abatements in the first, second, and third year of 2%, 16%, and 25% respectively. Usually, such dwelling units have an assessed value of 25% of the actual market value. Similarly, those condominiums or co-op units, which have an assessed value that exceeds $15,000.00, are eligible to receive tax abatements of 1.25%, 10.75%, and 17.50% respectively in the first, second, and third year. This amendment excludes condominium and co-op unit sponsors and those that succeed them from the scope of eligibility for tax abatement, although this deduction is now available to almost all condominium and co-op owners. However, a set of strict restrictions have been imposed on owners of buildings slated to receive other property related tax incentives. Owners of buildings in receipt of 421a or J-51 tax exemptions, as well as co-ops of the Mitchell-Llama class have been excluded from the scope of the tax abatement provisions of the amendment. However, owners of buildings so excluded can again enjoy eligibility for the tax abatement provisions covered under the amendment by giving up the existing tax exemptions hitherto enjoyed by them. In contrast with the above, the new tax abatements are available to building owners who are in receipt of only J-51 tax abatements, but not J-51 tax exemptions. Even in the case of buildings, in which one or more owners, who are now in receipt of either veterans' exemptions or Senior Citizens Homeowners Exemptions, are eligible for the new tax abatements. The restriction that has now been imposed in respect of the above is that the tax abatements would be reduced to the extent of the exemptions already being enjoyed by the above veterans or elderly residents. For condominium and co-op owners to enjoy the tax abatements covered under the amendment, a single building-wide application needs to be filed by the board of managers or board of directors by 15th October of the current year to enable the building to become eligible for tax abatements in the next year. In the case of a co-op building, the amount of tax abatement can be calculated by following a specific sequence of steps defined in the amendment. Thanks to the above long-awaited amendment, condominium owners, co-op owners, and some other specific categories of homeowners in New York can now enjoy the benefits of this new condominium and co-op tax abatement program. Although much delayed, this amendment is wholeheartedly welcomed. |