Published: Winter 1995
The following article appeared
in CNYC's quarterly Newsletter. You must be a member
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timely articles on issues of importance to cooperative shareholders
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The ACTION COMMITTEE FOR REASONABLE REAL ESTATE
TAXES is working to bring fairness to New York City's property
tax system. You can help by making a contribution
to the Action Committee fund.
LEADS THE CRUSADE
FOR TAX FAIRNESS
The Action Committee for Reasonable Real Estate Taxes was
formed by CNYC in February of 1990 in response to concern
over escalating property taxes. Noting that homeowners in
cooperatives and condominiums pay three to five times the
property tax of homeowners in single-family dwellings of comparable
value and that Class 2 (multiple dwellings) and Class 4 (commercial
property), representing 52% of New York City's total Market
Value, pay 82% of the city's property taxes, the Action Committee
has worked tirelessly to increase awareness of these startling
facts and to bring equity to New York City's property tax
The Action Committee advocates the establishment of two tax classes,
one Residential and the other Commercial, removing all caps, assessing
all property at full value, and locking in an effective tax rate between
the Residential and Commercial classes at 1:2. It supports the instituting
of circuit breakers to ensure relief for disadvantaged tax payers, and
pass-through to renters of a portion of the property tax burden.
CNYC thanks Martin Karp, chair of the Action Committee for Reasonable
Real Estate, for the following report on the new City budget:
First Step Towards Tax Fairness for Co-ops
The agreement on the NYC Fiscal Year 1996 Budget and the related action
to set real estate tax rates has changed the outlook for tax reform, reviving
hope for significant reform. Despite the urgent need to close budget gaps,
the Mayor and the City Council have followed through on their promises
of relief for homeowners in cooperatives and condominiums.
Early in the spring, the Mayor proposed to reduce the taxes paid by homeowners
in cooperatives and condominiums by $70 million, beginning a 10-year incremental
phase-down designed to bring cooperatives and condominiums in line with
Class 1 homeowners. No explanation was offered as to where this money
would come from.
In June, City Council Speaker Peter Vallone proposed a moderate tax-rate
increase on one-, two-, and three-family homes that are rented. This astute
measure would have raised revenue exceeding that required for the proposed
start of the co-op and condo tax decrease. But the Mayor was quick to
reject this proposal and soon announced a postponement of the decrease,
as well. In the end, however, the Mayor and City Council were able to
agree on a budget that caps the increase in tax shares for all residential
property at 2.75% and includes a $17 million reduction of co-op and condo
taxes scheduled to be implemented in 1996. It appears that this will be
the first quarter of the previously deferred $70 million; state legislation
is required to implement this reduction.
Affirm Your Support for Tax Fairness
Your participation is vital to the continued success of the Action Committee.
Your steady barrage of letters to the Mayor, Speaker Vallone, and your
City Council representative (all at City Hall, New York, NY 10007) will
continue to remind them how very important it is to bring fairness to
the tax system. Thank them for the promised reduction in cooperative and
condominium taxes and insist that they work for requisite implementing
legislation. Since this requires amendment of the New York State Real
Property Tax Law, please make sure that your Assembly representative and
State Senator are aware that the people living in your cooperative or
condominium need this tax relief.