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1. What do we know about the phase-in aspects of the legislation for coop owners whose coop residency is not primary?
2. How is the city going to determine whether a coop is owned as a primary or secondary residence? STAR Credits, Tax Returns, Mortgage Data, Shareholder Certification?
3. How come Coops have not received a Statement of 2012/13 Co-op Tax Benefits (normally received in December) that allocates Star Credits and the Coop Abatement among our units?
Thanks in advance for anyone's expertise in these matters.
Unfortunately, I think it is going to be more complicated than that, especially with the phase-out for non-primary residents. The DOF is going to need co-op board cooperation to determine which apartments are not used as primary residences, and they will have to provide very clear guidelines for making that determination.
In any case, it's going to cause a lot of pain for boards and managing agents to determine which apartments are not primary residences, and to figure out how to structure any assessment so it is fair to both primary and non-primary residents.
If shareholders have multiple residences it will be up to them and the DOF to determine which is primary. Our board and management has no idea who claims an out of state or out of city residence as their primary. The DOF will probably base it on their tax returns which the building does not see.
Also, the DOF determines what each shareholder gets as far as the rebate. The coop can't take the entire rebate for the building and divvy it up the way it wants. The DOF sends the coop a list of each shareholder and how much they get back.
my MANHATTEN co-op forces me to pay them the star rebate i would have recieved if i lived in the building. as i rented out my co-op apt. and did not live there. I was told to pay $1780 to $1800 dollars to the co-op THSI HAS BEEN GOING ON FOR 4 OR MORE YEARS. which i did. now i am trying to sell my apt what will happen to the so called star rebate. will i be attacked by a ClAW BACK AFTER I SELL THIS YEAR. ?? WHAT TO DO AT THE CLOSING IF I SELL?
Ellennora - Take a look at this webpage. It explains STAR eligibility: http://www.tax.ny.gov/pit/property/star/eligibility.htm.
To be absolutely certain of what will happen at the closing, check with the attorney who is handling the closing for you.
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I am not sure if any building has received the information for 2012/2013 yet. Our accountant is awaiting data for a number of buildings he handles. The way the legislation reads is that all owners will get the full tax rebate now and the city will send a bill for 50% of the tax rebate later this year to take back the money from non primary owners. The building will have to pay this as part of its tax bill and collect the money owed. The 2013/2014 statement will have the correct amount (25% of the old rate). There is a two page information piece in the NYC Finance web site that has an overview of the new regulations.
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