Co-Op Tax Relief Will Happen This Year
July 2, 2012
Over the past week, co-op owners in Northeast Queens have been expressing concern that the New York State Legislature failed to extend the New York City co-op tax abatement which expires June 30. While this is in fact true, co-op owners should not worry that they will see an increase in their taxes in the near future. The Mayor’s office has indicated that they will administratively continue the current tax abatement until the State Legislature reconvenes later this year to pass a new plan which provides even more relief to middle class co-op owners. According to the plan, proposed by Assemblyman Edward C. Braunstein (D-Bayside), middle-class co-op owners whose unit is their primary residence will see their abatement jump from 17.5% to 25% percent this year and over 28% in three years. This will result in a substantial reduction in maintenance costs. “There has been a lot of public discussion about the future of the NYC co-op tax abatement over the last two weeks. Co-op owners should be encouraged that relief is right around the corner and reports that they will see a spike in their maintenance costs are false. Moving forward, we will continue to advance measures that ease the cost burden on middle-class co-op owners in Northeast Queens,” said Assemblyman Braunstein. "We have reached an agreement on landmark legislation that will cut taxes for the vast majority of condo and co-op owners who pay a disproportionate share of the city's property tax burden," said Assembly Speaker Sheldon Silver. "This tax relief legislation has been agreed to by the Assembly, Senate, and the Governor and will be signed into law later this year when we return to Albany. In the short term, the city has issued tax bills for the current fiscal year based on the current tax abatement rates. When the legislation is signed into law as promised by the Governor, we anticipate that the new lower rates will be effective retroactive to July 1,” added Speaker Silver. "I want to reassure everyone that the Governor and legislative leaders have all agreed that the tax abatement will continue. In fact, most co-ops will see their property taxes reduced because of the increase in the abatement," said Senator Toby Ann Stavisky (D-Whitestone) "We have an agreement to not only renew the real property tax abatement but also to increase it for most of the co-ops and condos in Queens when the Legislature reconvenes. The forthcoming legislation will be a great victory for co-op and condo owners," said Council Member Mark Weprin (D-Oakland Gardens), founder of the New York City Council Co-op Condo Caucus. "Under the new and improved property tax abatement program co-ops and condos can continue to provide middle class families with much needed affordable housing along with the pride of ownership," said Warren Schreiber, President of the Bay Terrace Community Alliance and Co-President of the Presidents Co-op & Condo Council.