A residential coop or condo unit qualifies for the abatement under RPTL Section 467-a (known as Coop/Condo Abatement), if all of the following are true:
- Condominium or Coop is in tax class 2
- The unit is owned by individuals at least one of whom uses the apartment as his or her primary residence
- Unit is purchased on or before January 5 of a given year (in order for the tax benefit to commence on July 1st of that year)
- Applicant does not own more than three residential units in any one development
- Coop or condo is not part of the Urban Development Action Area Program (UDAAP)
- The unit is not receiving any of the following benefit: J-51 exemption, 420c, 421a, 421b, or 421g
- The unit is not held by sponsors or their successors in interest
- If the unit is owned by trust, it must be the primary residence of the beneficiary of the trust, trustee, or life estate holder
Tax Benefit Amount
The benefit amount depends on the value of the unit. Smaller and less valuable units receive a higher tax break.
|Unit’s Assessed Value (or Average Assessed Value if Coop)||Tax Liability is Reduced by:|
|$50,000 or less||28.1%|
|$50,001 – $55,000||25.2%|
|$55,001 – $60,000||22.5%|
|$60,001 and above||17.5%|
Given the high tax burden borne by the condominium owners and cooperative shareholders, it is surprising that some management companies and boards do not take advantage of the coop/condo abatement. It is important to take this abatement seriously, and start the process of collecting data from unit owners as early as November. This early start would allow managers, boards, and their representatives enough time to prepare and file the applications or renewal forms before the statutory deadline of February 15.
Many coop and condo boards as well as management companies maintain that it is too time-consuming to contact every unit owner to verify the occupancy status and obtain other pertinent details. However, this effort pays off tremendously by resulting in substantial tax savings for unit owners and shareholders.