Published: Autumn 1998
The the current property tax abatement program
could end in the spring of 1999. Use CNYC's Sample
Letters to urge Mayor Bloomberg to quickly present the promised
long-term plan to continue progress towards tax fairness.You can download the letters in MS Word or as a PDF. |
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homeowners in cooperatives and condominiums by making a contribution
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The Action Committee for Reasonable Real Estate Taxes met on Wednesday,
September 16th. Deputy Finance Commissioner Martin Ostreicher reported
on tax exemptions and abatements for homeowners in New York City cooperatives
and condominiums, and Action Committee Chairman Martin Karp asked participants
to push the City to deliver a viable long-range plan for tax fairness.
THIRD ABATEMENT YEAR
Commissioner Oestreicher reported that implementation of the third year
of the abatement has gone very smoothly, with 282,400 apartment units
in more than 5000 cooperatives and condominiums qualifying for abatements
amounting to $156,000,000. Basic data was collected by the department
in the spring and entered into the database. Tax notices sent in June
were calculated based on the assessments and qualification data for this
year, but the tax rate from last year, because the new tax rates were
not yet fixed. In August, the Department of Finance sent summary letters
to the designated contacts (often the managing agent) of all cooperatives
with qualifying units, seeking final corrections of the third-year information.
EXEMPTION PROGRAMS
In addition to the property tax abatement for homeowners in cooperatives
and condominiums, the Department of Finance administers the Senior Citizens
Homeowner Exemption (SCHE) Program for seniors whose family income is
less than $26,900; the Veterans exemption, which became applicable in
cooperatives this year; and the statewide STAR (School Tax Reduction)
program. The Enhanced STAR program for seniors with a family income of
$60,000 or less was implemented this year. STAR is based on a formula
set annually by the State. This year, qualifying seniors were exempted
from school taxes on $2,910 of the assessed value of their homes, resulting
in an abatement of $312.51.
Commissioner Oestreicher noted that the information collected for the
property tax abatement program was enormously helpful in enabling the
Department to contact individual cooperative shareholders directly to
enroll for STAR. Last year, the Department of Finance sent out 900,000
preprinted applications to New York City homeowners in private homes and
in cooperatives and condominiums. More than 300,000 responses were received,
of which some 170,000 households qualified for the Enhanced Star Program.
DETAILS TO BE SENT ONCE TAX
RATE IS FIXED
The City Council and the Mayor have agreed upon property tax rates for
fiscal 1999, but, as of October 1998, no formal tax fixing resolution
had been passed. Once the tax fixing resolution is passed and signed into
law, the Department of Finance will be able to calculate the precise dollar
amounts of abatement appropriate for each qualifying apartment unit. Within
10 days, DOF will then send every qualifying cooperative a letter communicating
all this information and providing precise dollar amounts for each apartment,
listed in four columns for 1) the property tax abatement, 2) SCHE, 3)
Veterans Exemptions, and 4) Enhanced STAR. Once you have this information,
you will be able to begin crediting the qualifying shareholders with the
amounts due to them.
Because the 1998/99 tax rate for Class 2 properties will be lower than
it was last year - 10.739% rather than 11.046% - your January tax payments
will be lowered to compensate for the slight overpayment billed in the
first half of the fiscal year before rates were established.
The STAR Program extends to all New York State homeowners in fiscal 1999/2000,
for their primary residences. The exemption is 60% of the Enhanced STAR,
phased in over a three-year period. In November, the DOF will mail preprinted
STAR application forms to all New York City homeowners who did not previously
register for STAR. These applications must be returned by January 5, 1999,
for the homeowner to receive the 1999/2000 STAR exemption.
LONG-TERM PLAN FOR TAX FAIRNESS
The Commissioner also said the DOF has experts hard at work on a long-term
plan for tax fairness. Action Committee Chairman Martin Karp then pointed
out that the New York State legislature is scheduled to meet briefly after
the election. Pete Grannis? A.11074 extends the property tax abatement
for an additional year at its present rate. This bill was passed unanimously
by the Assembly in June, but currently languishes in the Senate Rules
Committee. Passage of this important bill during the brief legislative
session would allay fears of a gap in tax abatements as work progresses
towards a viable long-term tax fairness plan. Mr. Karp urged participants
to write to the City Council on this issue and to inject it into the November
1998 election. |