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Council of New York Cooperatives & Condominiums
Article Archive
Tax Issues

Published: May 19, 1999

Member Alert
POTENTIAL LOSS OF
REAL ESTATE TAX ABATEMENTS
Action Needed Following Disastrous Albany Vote

To: ALL NYC COOPERATIVE & CONDOMINIUM APARMENT OWNERS
Subject: Potential Loss of Real Estate Tax Abatements

DISASTROUS ALBANY VOTE HURTS NEW YORK CITY
On May 17th, the New York State Legislature rescinded the City income tax on NYS commuters. This will reduce New York City annual revenue by at least $210. If legal actions by New Jersey and Connecticut are successful, lost revenues could increase to $380 million.

CITY BUDGET MUST COPE WITH REVENUE LOSS
The Mayor and the City Council must determine how to deal with this revenue loss. Notwithstanding an apparent $2 billion surplus, which cannot be projected into the future, New York City must continue to operate in a very difficult financial environment. Before this devastating event, the Mayor
had proposed approximately $400 million in tax reduction for Fiscal Year 2000, of which $166 million was designated for continuing property tax abatements for homeowners in cooperatives and condominiums. It is the largest single item in the Mayor's tax reduction program. Now the need to deal with a $380 million revenue loss makes the co-op and condo tax abatement program very vulnerable.

YOUR LETTERS CAN SAVE THE CO-OP/CONDO ABATEMENTS TO ENSURE THAT THE ABATEMENT PROGRAM IS CONTINUED, WE NEED YOU TO WRITE TO MAYOR GIULIANI AND CITY COUNCIL SPEAKER PETER VALLONE WITH COPIES TO YOUR REPRESENTATIVES IN THE CITY COUNCIL, THE ASSEMBLY, & THE STATE SENATE TODAY.

Unless there is an outpouring of concern by individual apartment owners, we may lose this important program. Please make an effort to have every resident of your cooperative or condominium send letters right away. You can make copies of the suggested letters on the back of this page or write ones
of your own that contain information about your own building. For the names of your representatives you can contact the League of Women Voters at 212 684-8484 between the hours of 10 AM and 4 PM. The substantial abatements you have received, and will continue to receive if we are successful, should justify this effort.

Thank you,
Martin E. Karp
Chair


SAMPLE LETTERS

May ____, 1999

The Honorable Peter F. Vallone
Speaker of the City Council
City Hall
New York, NY 10007

Dear Speaker Vallone:

We know that you fought against the State Legislature's ill considered recission of the commuter tax, and that you are now considering how to deal with the resultant revenue loss. We are also well aware of the continuing actions of the City Council under your leadership to address the inequity in
real estate taxation of cooperative and condominium residences.

As you know, the legislation authorizing the 3-year abatement program has expired. Without immediate action, absent a long term plan, cooperatives and condominiums will lose the partial relief that the abatement program had been providing.

We respectfully request your strong support for continuation of the abatement program in the current budget negotiations and for a joint New York City recommendation to the New York State Legislature to pass the requisite enabling legislation.

We thank you for both your past efforts and your continuing support of fairness in taxation for homeowners in cooperatives and condominium.

Very truly yours,

Your name

C.C. Your City Council Representative, City Hall, New York, NY 10007

 

May ____, 1999

The Honorable Rudolph Giuliani
City Hall
New York, NY 10007

Dear Mayor Giuliani:

We know that you fought against the State Legislature's ill considered recision of the commuter tax, and that you are now considering how to deal with the resultant revenue loss.

As an owner and resident of a New York City cooperative (condominium), I am concerned that the cooperative and condominium tax abatement program may suffer in the budget revision process. We respectfully note that the abatement program was not simply a "tax reduction", but was the introductory phase of a program directed to reduce the recognized inequity in real estate taxation of owner occupied cooperative and condominium residences.

The long term plan to address this problem has yet to be released. The 3-year abatement program enabled by prior State legislation has ended. Without immediate action, cooperatives and condominiums will lose the partial relief that the abatement program had been providing.

We respectfully request your strong support for continuation of the abatement program in the current budget negotiations and for a joint New York City recommendation to the New York State Legislature to pass the requisite enabling legislation. It should be a top priority of your administration to
find means for continuing the abatement program in the short term, while longer term resolution of this acknowledged inequity is developed.

Very truly yours,

Your name

C.C.
Your State Senator, Albany, NY 12247
Your Assembly Representative, Albany, NY 12248

 
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