Proposal would exempt high-end condos and co-ops from tax break

By Janaki Chadha, March 4, 2019

A state lawmaker is looking to exempt high-end properties from a tax break given to New York City condo and co-op owners, amid a push for broader reforms to the city’s much-criticized property tax system. Under legislation that Assemblyman Robert Rodriguez (D-Manhattan) plans to introduce, owners of some of the city’s most valuable condos and co-ops would not qualify for a property tax abatement that costs the city upward of $500 million annually. Rodriguez is looking to redirect revenue generated by the exemption toward capital repairs at the New York City Housing Authority. “It’s a real question of equity and whether we’re putting our tax dollars in the right place,” Rodriguez said in an interview.

Housing groups pushing the proposal, including the New York Housing Conference and the Citizens Housing and Planning Council, estimate it would generate about $172 million annually. Rodriguez said the cutoff for the exemption is still being evaluated, but the intention is to exempt the top 10 percent of condos and co-ops by property value. A fact sheet on the proposal from the Housing Conference calls for exempting properties with a Department of Finance assessed value of $200,000 of more.”