Tax Abatement for Residential Real Property Held in the Cooperative or Condominium Form of Ownership

Adopted Rules: Closed to Comments

Effective Date: 
Thursday, October 3, 2013
Download Copy of Adopted Rule (.pdf): 





Section 467-a of the Real Property Tax Law, originally enacted by chapter 273 of the Laws of 1996, established a partial reduction of real property taxes in the form of an abatement for qualifying real property held in the cooperative or condominium form of ownership. Chapter 4 of the Laws of 2013 amended this section to establish additional criteria for eligibility and requirements for abatement applications for fiscal years beginning in 2012, 2013 and 2014.


These proposed rules clarify the eligibility criteria and application requirements by providing:


       an explanation of the abatement amount calculation


       abatement application requirements for fiscal years beginning in 2012, 2013 and 2014, and the circumstances in which no application is required for the fiscal year beginning in 2012;


       that the Commissioner of Finance may require a supplemental application to gather additional information from a cooperative or condominium unit owner to determine eligibility;


       clarification of the definition of primary residence and the enhanced abatement available to a unit owner if one of the owner’s units is the owner’s primary residence;


       that units in a cooperative or condominium that are receiving an exemption or abatement from another section of law are ineligible for the abatement, and the exceptions to this rule;


       clarification of the eligibility requirement that a unit owner own no more than three units in the same development;


       that if the Commissioner of Finance determines that the unit was transferred primarily for the purpose of receiving the abatement, then the abatement application will be denied and the abatement already granted will be revoked;


       that if the property is in arrears of real property taxes or other City charges that total at least $1,000, then an abatement application will be denied, and an abatement already granted will be revoked; and


       that the Commissioner of Finance may recover any erroneous or excessive abatement that is granted.