Good And Bad News For State's Tax Abatement Law Plans
A few months ago, NY1 told viewers that the city’s coop and condo tax abatement was in jeopardy because it was about to expire. A recent update about the proposed state law provides both good and bad news to residents. NY1's Jill Urban filed the following report.
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A few months ago, NY1 told viewers that the city’s coop and condo tax abatement was in jeopardy because it was about to expire. The law affords apartment owners a 17.5 percent abatement to help offset a tax law disparity that charges a higher tax rate for coop and condos than for stand alone homes.
There's now an update, which provides good news and bad news.
"The good news is that, at least for this year, it looks pretty certain that all of those apartment owners out there are going to get the 17-and-a-half percent tax abatement on their real estate taxes," says attorney Eva Talel.
But there is a catch. Talel, an attorney who specializes in coops and condos, says while the abatement is in the budget for the coming tax year, two proposed bills are on the table that will impact the future of the abatement.
One is a straight extension of the law. It would continue the abatement as is through 2016. The other has been sponsored by the city and could impact almost every apartment owner in the five boroughs. That law would apply the abatement to primary residences only and would limit it to a $100,000 tax value.
"If the city’s sponsored bill is passed, your abatement is going to be reduced depending on the tax value of your apartment," Talel says. "If your apartment, for instance, has a $200,000 tax value, this year you will get a 17-and-a-half percent abatement but next year you’ll only get half."
Talel says this could have a huge impact on owners and buildings, especially in Manhattan where tax values are high. Boards would have to look elsewhere for extra money for improvements and maintenance.
While the bill is bad news for some, it would be good news for others.
"Those people who live in apartments that have low real estate tax evaluations get a 25 percent abatement, not just the 17-and-a-half percent," Talel says. "If this bill passes, the limit on what means a low value apartment would be doubled and many more people will be getting a 25 percent abatement."
Right now, both bills are sitting with the State Legislature and a vote is imminent. To share an opinion on which bill should pass, contact state representatives.