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
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
The land near Albert’s Landing (Google Maps)
Preservation fund weighs $6M purchase in East Hampton
Preservation fund weighs $6M purchase in East Hampton
Donald Trump and Allen Weisselberg (Getty)
Trump Org, CFO systematically cheated on taxes, prosecutors say
Trump Org, CFO systematically cheated on taxes, prosecutors say
Chris Burch and the 6.9 acre property (Getty, Out East)
Chris Burch returns to Hamptons with $29M Water Mill estate
Chris Burch returns to Hamptons with $29M Water Mill estate
arrow_forward_ios

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

Loading...