Extending property tax abatements to 2026: A win for New York co-op and condo owners

At Daisy, we're all about keeping you in the loop with the latest happenings in the ever-changing New York real estate scene. Recently, on June 1, 2023, the New York State legislature passed a significant bill, extending property tax abatements until 2026. This move has some major benefits for co-op and condo owners who rely on these abatements for financial relief. Let's take a closer look at how this legislation impacts property owners like you in our community.

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Understanding property tax abatement

To appreciate the importance of this extension, it's helpful to know what property tax abatement is all about. Simply put, it's a way to reduce or eliminate property taxes owed for a set period. For co-op and condo owners, this means the co-op board charges their shareholders an amount matching their tax abatement, which helps strengthen the corporation's financial health. Condo unit-owners directly benefit by keeping the abatement as savings. Over time, these abatements have played a critical role in New York's property tax structure, usually getting extended every two years.

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A notable change: extending to 2026

This year's extension is a bit different. The bill, passed on June 1, 2023, extends the co-op and condo property tax abatement until at least 2026. Sponsored by John Liu (D-Queens) in the Senate and Ed Braunstein (D-Queens) in the Assembly, this legislation maintains current tax relief levels. Property owners can continue to enjoy reductions ranging from 17.5% for properties assessed above $60,000 to a high of 28.1% for properties assessed at $50,000 or less.

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How the four-year extension helps

The extension has some great benefits. Condo unit-owners directly gain from the abatement's relief, and it also strengthens condo and co-op boards' financial stability, enabling informed decisions. Plus, the extended four-year period provides more certainty and stability for property owners, allowing for better long-term financial planning.

As Assemblyman Ed Braunstein puts it, "The purpose of the abatement is to bring property taxes for co-ops and condos in line with single-family homes. So until there's extensive property tax reform, it's crucial to extend this abatement."

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Cheers for the extension!

The tax abatement extension has received lots of positive feedback. Mary Ann Rothman, executive director of the Council of New York Cooperatives & Condominiums, was delighted, especially noting the early assurance of the extension. She agrees with Assemblyman Braunstein on the urgent need for property tax reform, emphasizing the complexity and unfairness of the current system.

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What's next?

Going forward, most expect Governor Kathy Hochul to sign the bill into law. Stakeholders can't imagine her vetoing it. Beyond this extension, the focus should also be on broader property tax reform in New York State. There's a clear need for a more equitable and transparent property tax system, and leaders like Assemblyman Braunstein are eager to work towards that goal.

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Final thoughts

In the end, extending property tax abatements until 2026 is a big win for property owners in New York State. It's essential for everyone to stay informed about potential changes in property tax laws and how they might affect them. With Daisy's unwavering commitment to board members and owners, we're here to make sure you stay informed and adapt to the evolving property management environment.

If your board isn't getting the financial guidance needed for your building to thrive, let Daisy help you today!