Property Taxes: What NYC Co-op Boards Need to Know
Paying property taxes is one of the most significant and technical responsibilities a New York City co-op board faces. Since unit owners contribute their share through monthly common charges, it’s vital that boards ensure taxes are minimized, accurate, and paid on time.
If you’re new to this process or want to improve your board’s financial management, explore our property management services or contact us at HPM. You can also learn more about financial obligations for boards.
Understanding NYC Property Tax Classes
New York City divides residential buildings into two major classes:
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Class 1: Includes 1- to 3-family homes, taxed at about 21% of their assessed value.
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Class 2: Covers most co-ops, condos, and multifamily buildings, taxed at 12.612% of their assessed value. This assessment equals 45% of the building’s market value (calculated as potential rental income minus allowable expenses).
To avoid late fees, be aware of your building’s assessed value:
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Under $250,000: Quarterly bills due on July 1, October 1, January 1, and April 1.
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Over $250,000: Semiannual bills due January 1 and July 1.
For detailed guidance on NYC property tax classes, visit the NYC Department of Finance.
Reduce Property Taxes with Exemptions, Abatements, and Credits
Saving money starts with understanding and applying for potential tax relief programs. Here are the main types:
1. Exemptions
These lower the assessed value of the building before taxes are calculated. Common exemptions apply to:
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Seniors
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Veterans
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Clergy
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Disabled homeowners
Check your Annual Notice of Property Value (NOPV) to see which exemptions apply. Submit any necessary documentation to the NYC Department of Finance by March 15.
2. Abatements
These lower the actual amount of taxes owed. You’ll see these as line-item deductions on your bill, not on your NOPV.
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The Co-op and Condo Tax Abatement applies if units are primary residences.
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The higher your assessed value, the lower the abatement percentage.
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All unit owners must be properly registered for the board to receive full benefits.
Apply by February 15. For guidelines, see the NY State Department of Taxation and Finance.
3. Credits
If overpayments have occurred in prior years, you can:
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Apply them to the current year’s tax bill.
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Request a refund check instead.
Stay Compliant: Update Ownership Records
Changes in ownership or residency status must be updated promptly with the Department of Finance. This is crucial for abatement eligibility and proper tax processing. Boards must also confirm whether each unit is owner-occupied or rented out.
Let Experts Help
Property taxes can be complex. HPM can help your co-op board:
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Apply for exemptions
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Maximize abatements
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Track deadlines and compliance
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Consult with a property tax attorney if needed
HPM is the trusted authority in Upper Manhattan for condo and co-op building management. Learn more about our experience at HPM.
We can also consult with a property tax lawyer to ensure that everything is above board.
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