New York City Property Tax Advisory Commissioner Advises
that Condominium Should No Longer Be Considered as Class 2 Property
Excerpt from
Yiddish article in Der Yid’s February 7, 2020 edition
The proposal calls to
tax condominiums and co-ops under the same system as smaller houses. Calls are
being made to provide discounts to low-income residents for their primary
residences. The new ten-point plan is an important step that will hopefully
bring fairer taxes and relief for condo and co-op owners. UJO is in talks with
the commissioner to ensure that the proposal will indeed bring the intended
relief. UJO lauds the recommendations but stresses that the results will depend
on the final details. It is important that house and condo owners should
closely follow the process and voice their opinions.
Brooklyn, NY –UJO has
been advocating for years in an ongoing effort to bring tax relief to
Williamsburg’s condo and co-op owners in order to stop their unsustainable
taxes. Last week, the New York City Advisory Commission for Property Taxes
released ten recommendations on how to reform the property tax system. One of
the critical recommendations is that all condominiums and co-ops, as well as
rental buildings of up to ten units, should be removed from the Class 2
category and included in Class 1 together with one to three family houses.
Many condo and co-op
owners find themselves having to pay unbearably large bills, the near
equivalent of nearly another mortgage. This is due to the exorbitant taxes
required of these non-luxury housing owners. The reality is that these condos
and co-ops should not be compared to luxury rentals. Historical valuations and
unjust comparables gravely skew assessments for hardworking, middle-class
homeowners in Williamsburg.
UJO has held continued
meetings with the Department of Finance’s top officials. The meetings were
organized by former State Senator Daniel Squadron and then by State Senator
Brian Kavanagh. Assemblyman Joe Lentol has participated as well, along with
Councilman Stephen Levin. Meetings have been held at City Hall on this issue
with the assistance of the Mayor’s Deputy Chief of Staff, Lincoln Restler.
UJO has also advocated
for condo owners with the Department of Finance. The Mayor and Speaker of City
Council appointed a commission to try to adjust the system. UJO testified at a hearing
in Brooklyn and delivered a report showing how the current system crushes
families that struggle to make ends meets. The result of this was the release
of a new plan which signals very significant progress towards ending the Class
2 classification for the condos and co-ops.
“We applaud the New York Advisory Commission on property
tax reform,” says Rabbi David Niederman, UJO executive director and president, “for
issuing the preliminary report and recommending putting an end to the terrible
injustice of taxing condominiums and co-ops in a separate class with higher
assessment rates.
“Of course, the actual
results of the reform will all depend on what the final form of the plan looks
like. Any truly beneficial form will require a total reset, starting from
scratch with assessments, which can no longer be based on historical
assessments. There also needs to be a system on how not to compare affordable
condominiums with luxury houses being that historical variations and unjust
comparables increase the assessments for hardworking middle-class homeowners in
our neighborhood.
“The first type of
commission that was convened by the Mayor’s New York City Council was very
encouraging. We hope and pray that this will lead to a more just system for
all. But it is important to know that these recommendations are presently just
a broad framework and far from being the law. How much and exactly what will
fall under the new categories of the plan remains to be seen when the State
government passes the legislation.
“We thank Senator Joe
Lentol, former State Senator Daniel Squadron, State Senator Brian Kavanagh, and
Councilman Stephen Levin along with the Mayor’s office and other officials who have
worked diligently on this issue. This has helped bring much-needed attention to
this terrible injustice against Williamsburg condo owners.”
It is important to continue
to work with state legislators, and it is also important that the community follow
the implementation of the recommendations and continue to be aware of the final
plan as it develops. Homeowners should provide input when possible to make sure
the plan offers the community the benefits it most needs.
*****
UJO continues its
discussions with those who are working with the Tax Commission to provide
comments and to discuss further steps in the process of reforming property
taxes. As additional public hearings are planned, it is important that those
affected by this issue follow the developments and provide direct input.
This is a rare
opportunity to effect relief. After these changes are passed, it will be very
challenging to reopen this issue for many years. This means that as the new
proposal plays out, many parties will try to influence the process to benefit
their own interests. If low to middle-income condo and multi-family housing do
not make an effort to voice their opinions, reforms may end up hurting them
instead of helping them. This is why it is so important for homeowners to
follow this process and come in person to speak up when possible.
Another important factor
for homeowners to know is that as preliminary assessments are sent out, this is
the time to appeal property taxes. Homeowners should be aware of how to make a
request for a review from the Department of Finance so it will review the
assessment and potentially lower the taxes.
