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Assessor Manuals, Exemption Administration

Exemption Administration Manual—Part 2: Multiple dwellings and urban renewal

Section 4.07 - RPTL Section 467-a: Class 2, Cooperatives and Condominiums in New York City

Exemption code(s)

Not applicable. (See Coding of abatement on assessment roll below.)

Year originally enacted:

1996

Related statutes:

RPTL § §400, 402, 404, 406, 408, 410, 410-a, 412, 412-a, 416, 418, 420-a, 420-b, 425, 436, 458, 458-a, 459-c, 462, 467, 467-b, 489, 499-bbb, 499-bbbb

Summary:

Residential property which is:

  1. Located in New York City,
  2. held in the cooperative or condominium form of ownership, and
  3. currently included in Class 2 is eligible for an abatement of taxes The amount of the abatement depends on the "average unit assessed value" of the eligible apartment or residential unit (as indicated in Calculation of exemption below). Such property is liable for special assessments.

The abatement is not available to sponsors of cooperative or condominium offerings nor to owners of more than three cooperative or condominium units. To be eligible for the abatement, the unit must serve as the primary residence of the owner. Owners of three or fewer units may receive the abatement, but one of those units must serve as the owner's primary residence. (A phase-out abatement is available for owners who received the abatement in 2011/12, but where none of the units served as the owner's primary residence in 2012/13). Lastly, the abatement may not be granted to residential units already exempt under another statute, unless the exemption is provided in accordance with RPTL §§400, 402, 404, 406, 408, 410, 410-a, 412, 412-a, 416, 418, 420-a, 420-b, 425, 436, 458, 458-a, 459-c, 462, 467, 467-b, 489, 499-bbb, or 499-bbbb.

A penalty of up to $10,000 may be imposed upon each member of a Cooperative Board of Directors that fails to pass the tax savings along as required.

Eligibility requirements

Ownership requirements:

Property must be held in a cooperative or condominium form of ownership by a private individual or organization. This abatement may be granted to a dwelling unit within such a property where the unit in question is held in trust solely for the benefit of a person or persons who would otherwise be eligible to receive this abatement were such person or persons the legal owner of the unit. However, the abatement is not available to sponsors of cooperative or condominium offerings.  Furthermore, this abatement is not available to owners of four or more units within the same property.  Owners of three or fewer units within any one property may receive the abatement only if one of the units is the owner's primary residence.

Property location requirements:

Property must be located in New York City.

Property use requirements:

Property must be used for residential purposes and classified as Class 2 pursuant to section 1802 of the Real Property Tax Law.

Certification by state or local government:

An application for a certificate of abatement must be annually submitted to the NYC Commissioner of Finance by the board of managers of a condominium or the board of directors of a cooperative apartment corporation.

Required construction start date or other time requirement:

Abatement is only allowed for fiscal years commencing in 2012, and extending through 2022.

Local option

No.

Limitation on exemption

Limitation on exemption by amount, duration, and taxing jurisdiction
General municipal taxes School district taxes Special ad valorem tax Special assessments
1. Amount Yes* Yes* NA No abatement allowed
2. Duration Fiscal years commencing in 2012 and extending through 2022 Fiscal years commencing in 2012 and extending through 2022 NA No abatement allowed
3. Taxing jurisdiction
a. City Ex NA NA Tax
b. School district NA Ex NA NA
Ex-Exempt     Tax-Taxable     NA-Not Applicable

*The amount of the abatement depends on the "average unit assessed value" of the property. (see E. Calculation of Exemption below).

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

The schedule to be followed in calculating the abatement depends on the amount of the "average unit assessed value," determined by dividing the residential portion of the property's assessed value by the number of dwelling units in the property.  In the case of cooperative units, the average unit assessed value is determined by multiplying the total assessed value of the units in the structure by the percent of shares that are residential, then dividing that figure by the number of residential units.  the average unit assessed value thresholds and benefit amounts are as follows:

1. Less Than or Equal to $50,000:
Year of abatement (fiscal year commencing) Percentage of abatement
2012 25.0
2013 26.5
2014–2022 28.1

2. $50,001--$55,000
Year of abatement (fiscal year commencing) Percentage of abatement
2012 22.5
2013 23.8
2014–2022 25.2

3. $55,001--$60,000
Year of abatement (fiscal year commencing) Percentage of abatement
2012 20.0
2013 21.2
2014-2022 22.5

4. $60,001  and above
Year of abatement (fiscal year commencing) Percentage of abatement
2012 17.5
2013 17.5
2014-2022 17.5

Non-resident owners who received the abatement in 2011--2012 are eligible to received a phased reduction in abatement benefits as follows:

Stages
Phase-out stages Tax year Abatement benefit level
Stage 1 2012–2013 50% of 2011-12 benefit (i.e., 12.5% if 2011-12 average assessed value was $15,000 or less; 8.75% if more than $15,000).
Stage 2 2013–2014 25% of 2011-12 benefit (i.e., 6.25% if 2011-12 average assessed value was $15,000 or less; 4.375% if more than $15,000).
Stage 3 2014–2018 None

Special ad valorem levies and special assessments:

No abatement allowed.

Coding of abatement on assessment roll

Coding of exemption on assessment roll
Code Description of alternative codes possible
NA


Note:
Since the abatement allowed here is a reduction in actual taxes levied rather than a reduction in assessed value, no exemption code should be used and no dollar amount should be entered in the "exempt value" section of the assessment roll.

Filing requirements (owner or occupant of property)

Abatement application form and instructions are available at the Internet website of the New York City Department of Finance. An owner of a dwelling unit may request a redacted copy of the tax abatement application from the management of the building in which his or her unit is located.

Reporting requirements (assessor)

None.

Similar exemptions

See Chart IA and Chart IB.

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