Legislature Extends Co-op and Condo Property Tax Abatement to 2026
Bill Morris in Legal/Financial on June 1, 2023
The state Legislature on Thursday passed a bill — which Gov. Kathy Hochul is expected to sign into law — that will keep the cherished co-op and condo property tax abatement alive until at least 2026.
The companion bills, sponsored in the Senate by John Liu (D-Queens) and in the Assembly by Ed Braunstein (D-Queens), keep intact the current levels of tax relief, which range from a high of 28.1% for properties assessed at $50,000 or less, to a low of 17.5% for properties assessed above $60,000. (A property's assessed value is a fraction of its market value.)
Many co-op boards assess shareholders an amount equal to their tax abatement, which means shareholders get no personal tax relief but the bottom line of the corporation is enhanced. Since condo unit-owners pay their own property taxes directly, they pocket the abatement.
"Extending the abatement by four years was the big achievement here," Braunstein tells Habitat. "It used to get extended by two years. The purpose of the abatement is to bring property taxes for co-ops and condos into line with single-family homes. So until there's extensive property tax reform, it's important to extend this abatement. In the meantime, I'm going to keep working for fundamental reform of property taxes."
Mary Ann Rothman, executive director of the Council of New York Cooperatives & Condominiums, reacted enthusiastically to news of the bill's passage. "I'm elated, delighted," she said. "We've never had assurance this early that the abatement would be extended." The current extension expires on June 30, 2023.
Calling the city's current system of property taxation "convoluted and unfair," she applauded Braunstein's vow to work to overhaul the system. "I couldn't agree with him more," she said. "But if we're going to push the city to put through major tax reform, it's going to take time."
Rothman adds that she expects no resistance to the extension of the tax abatement from Gov. Hochul: "There's no reason on Earth why she would veto this bill."