Council closes tax-lien loophole that threatened property seizures

Nonprofits exempt from taxes can lose land for failure to pay them

TRD NEW YORK /
Feb.February 28, 2020 10:30 AM
Antonio Reynoso and 140 Devoe Street in Brooklyn (Credit: Google Maps)

Antonio Reynoso and 140 Devoe Street in Brooklyn (Credit: Google Maps)

The City Council passed a measure to safeguard non-profits against tax liens for taxes they don’t technically owe.

Although charitable organizations are exempt from property taxes, New York City sent 90-day notices to 610 such property owners in 2019, and sold off 27 liens, City & State reported. Six of those have settled their debt to avoid foreclosure.

Councilmember Antonio Reynoso drafted the bill, which will require the Department of Finance to exclude from the city’s tax-lien sales those properties that have received a charity exemption in the last two years. It also excludes charities that have applied for the exemption but not yet received it.

Liens can still be placed on properties for not paying their water bill.

Charities got swept up in the annual tax lien sales following a 2006 decision by the Department of Finance to stop sending renewal notices each year to properties with an exemption, which led to many of the exemptions lapsing.

“When it comes to developers, the city’s willing to bend over backwards to make sure they get help,” Reynoso said, according to the publication, “but smaller organizations don’t even get what’s due to them.”

The annual tax lien sale is up for reauthorization by the City Council this year, which approved it through 2020 by a 50-to-1 vote in 2016. [City & State] — Georgia Kromrei


Related Articles

arrow_forward_ios
New York City Comptroller Scott Stringer (Credit: Andrew Burton/Getty Images, iStock)

Coronavirus will cost city billions in tax revenue: comptroller

Taxes would rise for owners of Manhattan mansions and penthouses, but the biggest shock would be on homeowners in Brooklyn neighborhoods (Credit: Pixabay)

City’s property tax overhaul would increase burden for single-family homeowners

An aerial of Flushing's waterfront and New York City Council member Peter Koo (Credit: Google Maps)

Massive Flushing waterfront development stirs opposition

City Council member Bill Perkins and Lenox Terrace 484 Lenox Avenue (Credit: Getty Images and Google Maps)

Council drives another nail in coffin of Olnick’s Lenox Terrace project

Governor Andrew Cuomo and Mayor Bill de Blasio (Credit: Getty Images)

Cuomo expects NYC to take lead on property tax reform

Evictions are going down in parts of the city where Right to Counsel applies, sparking a push to expand the law. (Credit: iStock)

Evictions down 20% in parts of NYC where tenants get free lawyers

City Council member Bill Perkins and Lenox Terrace 484 Lenox Avenue (Credit: Getty Images and Google Maps)

Is Olnick bluffing on Lenox Terrace? History says no

A photo illustration of Michael Gianaris and Jeff Bezos (Credit: Getty Images, Wikipedia, iStock)

Gianaris wants to reform NYC tax credit programs that drew Amazon

arrow_forward_ios
Loading...