New York State Tax Break Finally Coming to Co-op and Condo Owners
April 29, 2014 — State Senator Tony Avella (D-Bayside) officially announced last week the inclusion of a tax-relief program for small homeowners, renters and co-op and condo owners in this year's New York State budget. After the original proposal entailed tax relief solely for renters, Avella introduced legislation to include condominiums and cooperative owners and other homeowners.
The new "Circuit Breaker" tax-relief program — a nickname for a needs-based tax break or rebate, used in over 30 states and also called an "individual's tax cap" — makes qualifying residents eligible to receive a refundable tax credit against their personal state income tax. The final amount per person will depend on individual incomes, property-tax rates and other factors.
"The tax relief program will provide a much needed break to both renters and small homeowners at a time when many residents are facing constant increases in their rent and property taxes. Although the credit amount may not be significant, it is a good first step in alleviating some of the financial burden constantly faced by New York City residents," Avella said in a statement.
"A tax credit will be welcomed by the many middle-class families living in New York City co-ops and condos. The co-op and condo community appreciates Sen. Avella's continued advocacy on its behalf," said Warren Schreiber, co-op board president of Bay Terrace Cooperative Section I, in Queens.
In the State Assembly, Speaker Sheldon Silver also advocated for a circuit-breaker credit.
Bob Freidrich, board president of the 110-building, 10,000-resident Glen Oaks Village co-op in Queens, said, "Small homeowners, co-op and condo owners will be able to get an income tax break that they've never had before. This is a huge step in the right direction."
An earlier version of a circuit-breaker tax credit, Bill S3266-2013 was introduced last year by State Senator Liz Krueger
Details are not yet posted at New York State Dept. of Taxation and Finance website, but presumably will be.
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