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Real Estate Law Blog

Co-op and Condo Property Tax Abatements

News About the Cooperative/Condominium Abatement
Recently, the NY State Legislature passed bill S2320/A3354, which amended the Co-op/Condo Abatement. For more information and a description of changes,  click here.
    
Owners of cooperative units and condominiums who qualify for the Co-op/Condo Property Tax Abatement can have their property taxes reduced. The amount of the abatement is based on the average assessed value of the residential units in the building.

Abatement percentages are shown in the following table:

                        Average Assessed Value                                   Benefit Amount Per Year  
  
                                                       2012/2013           2013/2014         2014/2015
                                          
                                $50,000 or less                                  25%                    26.5%              28.1%
                                $50,001 - $55,000                              22.5%                  23.8%              25.2%
                                $55,001 - $60,000                               20%                    21.2%              22.5%
                                $60,001 and above                             17.5%                  17.5%              17.5%
 
Co-op Tax Benefits Letter
Finance will be mailing a Co-op Tax Benefits Letter outlining each unit's tax savings for personal exemptions and the co-op property tax abatement. For more information and the Co-op Tax Benefit Change Form, click here.

Phase Outs for Owners Currently Receiving the Abatement
If you are an owner who is not using the unit as your primary residence and you received the abatement in 2011/2012, your abatement will be phased out. We mailed you a letter explaining that we think you no longer qualify for the abatement. As the deadline to respond to the letter has been extended, responses must be mailed by July 22, 2013 and sent to:

NYC Co-op/Condo Abatement
P.O. Box 1194
Maplewood, NJ 07040

This is how the phase out will work:

           Tax Year         Phase Out Abatement Amount            How You or Your Co-op Board Will
                                                                                                        See This on  Your Bill

          2012/2013          50% of the 2011/2012 abatement                 You or your board will see an
                                  percentage you received before the           Abatement Reversal Charge on your
                                       abatement was amended.                         2013/2014 Property Tax Bills.

          2013/2014          25% of the 2011/2012 abatement            You or your board will see a reduced
                                  percentage you received before the           abatement amount on your 2013/2014
                                       abatement was amended.                   property tax bills starting with your July
                                                                                               2013 bill

          2014/2015                             0%                                    Abatement will no longer appear on
                                                                                               your property tax bill.

How to Apply
Cooperative and condominium developments that are filing for the abatement for the first time should complete the Cooperative and Condominium Property Tax Abatement application. The application must be submitted by the board of directors or managing agent on behalf of the entire development.

Deadline: Applications for new cooperative and condominium developments were due April 1, 2013.



Requirements

  • The co-op or condo unit must be the owner's primary residence.
  • Co-op or condo owners cannot own more than three residential units in any one development and one of the units must be the owner’s primary residence.
  • Co-op or condo owners cannot be receiving any of the following exemptions or abatements:
    • J-51 Exemption
    • 420c, 421a, 421b, or 421g
    • Housing Development Fund Corporation (HDFC)
    • Division of Alternative Management Programs (DAMP)
    • Limited Divided Housing Companies, Redevelopment Companies
    • Mitchell-Lama Building
    • Clergy
  • Units held by sponsors or their successors in interest are not eligible.
  • Units owned by a trust are eligible only if the unit is the primary residence of the beneficiary of the trust, trustee, or life estate holder.

For more information on requirements and recent changes to the abatement click here

Note for Property Owners:
You may also be eligible to receive the following personal exemptions: Basic or Enhanced School Tax Relief (STAR), Disabled Homeowner, Senior Citizen Homeowner and Veterans. The application for these exemptions must be postmarked by March 15. If you own a co-op, contact your management company to find out what exemptions you are receiving in the current tax year (July to June). Call before March so that you will still have time to apply for benefits in the next tax year. If you own a condo, you can find your current exemptions on your Property Tax Bill
.