Co-op and Condo Property Tax Rate Dips Slightly
Herrick special counsel, Brett J. Gottlieb, spoke to Habitat Magazine about New York City's recent announcement of property tax rates for the 2021-22 fiscal year. The article stated that the tax rate for Class 2 properties, which include co-ops, condos and rental buildings, "declined by 0.3%, while the rate for Class 1 properties – residential buildings of up to three units – dropped 5.1%"
"Many industry professionals, myself included, expected a large increase to offset the sharp drop in property tax assessments due to the pandemic," said Brett.
"Condos and coops are taxed as comparably situated rental buildings," he explained, elaborating, "and therefore are directly impacted by vacancy rates and rent reductions. As vaccinations increase and employer mandates to return to work rise, vacancy rates should subside. If they drop sharply, it’s a good assumption that assessed values will resume their upward trajectory."