Deadlines Are Looming for Property Tax Abatement Filings

The abatements can save co-op shareholders and condo unit-owner serious money – from 17.5 percent to 28.1 percent – on their real estate taxes. The benefit is available only to taxpayers who use the apartment as their primary residence. Apartments owned by sponsors, LLC’s, corporations, partnerships or people who own more than three apartments in the building are not eligible. And the city will not grant the tax break to a condo that has been designated as a commercial property, or where the owner cannot supply a Social Security number.

An apartment qualifies if it meets the criteria as of Jan. 5 prior to the July 1 beginning of the city’s tax year, and it remains qualified for that tax year even if there is a later sale or other change in circumstances.

The filings can be handled either by the managing agent or the individual apartment owner. Regardless of who does the filing, appropriate action must be taken prior to the deadlines set by the Department of Finance (DOF), because the city has said these deadlines will not be extended. Boards and managing agents may want to advise apartment owners of actions they can take to obtain or continue benefits.

The appropriate filing depends on whether the building is a cooperative or condominium, and whether or not the building or apartment currently receives the Co-op/Condo Abatement. Here are the four looming deadlines:

Cooperative buildings that currently receive the abatement
Managing agents should have received a breakdown letter from the DOF for the 2015/16 tax year and must file updates directly with the City on the 2015/16 Co-op Tax Benefit Change Form by February 15, 2016.

Buildings that do not currently receive the abatement
The managing agent must file the first-time 2016/17 Cooperative and Condominium Property Tax Abatement Application directly with the City by March 2, 2016. This applies to any building that is not receiving the abatement but will meet the requirements for the 2016/17 tax year, including recently constructed or converted condominiums and buildings that currently have a 421-a, 421-g, Mitchell-Lama or J51 exemption that will expire at the end of June 2016.

Condominium buildings that currently receive the abatement
New owners and existing owners who qualify but have not been receiving the benefit should file the 2016/17 Homeowner Tax Benefits Application directly with the city. The deadline stated on the form is March 15, 2016. See the description under "Individual apartment owners" (below) for this and other uses of the form.

Individual apartment owners
New owners, owners who have changed the names on their shares or deed, and owners who qualify for, but do not currently receive the abatement, should file a 2016/17 Homeowner Tax Benefits Application by March 15, 2016. Owners mail this form directly to the city. A separate form is required for each eligible apartment, including condominium units that have been combined but not officially merged on the tax map. The same form can also be used for School Tax Relief (STAR) and other benefits. It can be used for both condo and co-op apartments. Owners may file the form throughout the year, even after the deadline for the upcoming tax year although the benefit will then start for the following tax year.