City pushes bill to restrict tax abatements

New York /
Jun.June 15, 2012 02:00 PM

City officials have sponsored a bill that would restrict the 17.5 percent tax abatement awarded to owners of condominium and co-op units and abolish it altogether for people who aren’t primary users, NY1 reported. The tax abatement, which is about to expire, works to offset a tax law disparity that charges a higher rate for co-op and condo units than it does for single-family homes. Eva Talel, a Stroock attorney who specializes in co-ops and condos, told NY1 that the abatement is likely to be extended at least for the remainder of the year.

But the State Legisulature is determining how to proceed with the rule in the future. One proposal would extend the current laws through 2016, but the city-sponsored one would restrict the tax abatement to primary residences and would limit it to $100,000 in value.

While the bill would actually increase the pool of owners who qualify for the 25 percent tax abatement given to buildings with low tax evaluations, it would cost owners of higher-priced apartments, especially in Manhattan, thousands. NY1 noted that it also might make it more difficult for co-op and condo boards to collect extra money for improvements. [NY1]


Related Articles

arrow_forward_ios
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
First Metaverse REIT could hit public exchange within a year
First Metaverse REIT could hit public exchange within a year
First Metaverse REIT could hit public exchange within a year
The agency is challenging $21 billion in deductions over a three-year period (Getty)
IRS probes promoters of tax-deductible property easements
IRS probes promoters of tax-deductible property easements
Photo Illustration of Donald Trump (Illustration by Kevin Rebong for The Real Deal)
Treasury Department must give Trump’s tax returns to Congress: DOJ
Treasury Department must give Trump’s tax returns to Congress: DOJ
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Democrats look to curtail tax break for “pass-through” businesses
Democrats look to curtail tax break for “pass-through” businesses
Democrats look to curtail tax break for “pass-through” businesses
Regeneron CEO Leonard Schleifer and 777 Old Saw Mill River Road in Tarrytown (Getty, Jim.henderson/Wikimedia)
Biotech firm Regeneron plans $1.8B expansion in Westchester
Biotech firm Regeneron plans $1.8B expansion in Westchester
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...