Oops: City mistakenly gave away $10M in condo, co-op tax breaks

A recent audit shows that parking garages, storage spaces received the breaks

New York /
Jan.January 28, 2016 09:00 AM

Wait a second, you’re not a residential co-op or condo — is probably what city officials said when it was discovered that more than $10 million in tax breaks mistakenly went to parking garages, storage spaces and other improper recipients.

Over the last four years, the city’s Finance Department gave out more than $10 million to indoor parking garages, gardens, storage spaces, three office buildings and two retail shops through a tax-rebate program intended for residential owners of co-ops and condos, according to an audit by city Comptroller Scott Stringer.

The audit shows that the Finance Department failed to properly review records, causing more than 1,000 corporate-owned condos and co-ops to improperly receive the tax benefits, the New York Post reported. The tax breaks ranged from 17.5 percent to 28.1 percent of the total tax bills each year, the newspaper reported.

“The city handed out millions in tax abatements to corporate-owned condos, parking spots and cabanas because no one bothered to review basic tax records,” Stringer said. “The Department of Finance needs to significantly step up its game and collect all the taxes the city is owed.”

The Finance Department is installing internal software to help catch this kind of mistake in the tax seasons ahead. [NYP] Kathryn Brenzel


Related Articles

arrow_forward_ios
REBNY's James Whelan (Photos via iStock; Whelan by Anuja Shakya)

NYC lost $1.2B in real estate tax revenue

NYC lost $1.2B in real estate tax revenue
Stephen Ross of Related (Getty, Wikipedia Commons)

What to make of Stephen Ross betting $1M on mayor’s race

What to make of Stephen Ross betting $1M on mayor’s race
Sen. Brad Hoylman (Getty; iStock)

State pols make pied-à-terre tax a priority for 2021

State pols make pied-à-terre tax a priority for 2021
Scott Stringer (Getty)

Shut down offices, indoor dining: Stringer

Shut down offices, indoor dining: Stringer
Steven Mnuchin (Getty)

Trump plan would let real estate firms avoid SALT deduction cap

Trump plan would let real estate firms avoid SALT deduction cap
Mayor Bill de Blasio (Getty, iStock)

Commercial property tax delinquencies jump 50%

Commercial property tax delinquencies jump 50%
President Donald Trump and former Vice President Joseph Biden (Getty, iStock)

Election puts real estate’s generous tax breaks in spotlight

Election puts real estate’s generous tax breaks in spotlight
CBRE CEO Bob Sulentic; the firm has shifted its global HQ from LA to Dallas. (CBRE, Getty)

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market
arrow_forward_ios

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

Loading...