Tax Alert! Co-op & Condo Tax Abatement Filings Due

You can find the new forms on the NYC website.

Either the managing agent or the individual apartment owner is responsible for filing the abatement forms. Although the state law authorizing the abatement expires as of June 30, 2015, the city's Department of Finance (DOF) is asking boards and owners to apply for benefits by deadlines as early as February 16. That way, if the law is renewed, they can obtain benefits for the 2015-2016 tax year, or else correct co-op benefits for the 2014-2015 tax year.

Managing agents should take appropriate action prior to the deadlines set by the finance commissioner as the city has said it will not extend these deadlines. Keep proof of mailing or use e-mail where permitted. In addition,

managing agents and boards may want to advise apartment owners of actions they can take to obtain or continue tax benefits.

The appropriate action depends on whether the building is a cooperative or condominium and whether or not it currently receives the co-op/condo abatement. Here is what you should do.

For cooperative buildings that currently receive the abatement. Managing agents should have received a breakdown letter from the DOF for the 2014-2015 tax year, and must file updates directly with the city on the 2014-2015 Co-op Tax Benefit Change Form by February 16, 2015.

For condominium buildings that currently receive the abatement. New owners and existing owners who qualify but have not been receiving the benefit should file the Homeowner Tax Benefits Application directly with the city. The deadline stated on the form is March 16, 2015. See the description under "individual apartment owners" below for this and other uses of the form.

For co-op and condo buildings that do not currently receive the abatement. The managing agent must file the first-time 2015-2016 Cooperative and Condominium Property Tax Abatement Application directly with the city by March 2, 2015. This applies to any building that is not receiving the abatement but will meet the requirements for the 2015-2016 tax year, including recently constructed or converted condominiums and buildings that currently have a 421-a, 421-g, shelter rent, or J51 exemption that will expire at the end of June 2015.

For individual apartment owners. The DOF recently posted a new Homeowner Tax Benefits Application for the 2015-2016 tax year that includes a check box for the Co-op/Condo Abatement. The same form can also be used for STAR and other benefits. The form states a due date of March 16, 2015. It can be used for both condominium and cooperative apartments. The form should be filed by the apartment owner directly with the city. Owners who already receive the abatement benefit may not need to file this form. However, it may be prudent for managing agents to give the form to all owners at this time and let the individual owners decide if they need to file.

Eva C. Talel is a partner at Stroock & Stroock & Lavan

This content was prepared by the offices of Stroock & Stroock & Lavan

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