Section 467-a of the Real Property Tax Law, originally enacted in 1996, established an abatement from real property taxes for dwelling units in real property held in the cooperative or the condominium form of ownership that meet the qualification criteria of the law. This law was amended in 2013 to change certain provisions relating to eligibility and application for the abatement for fiscal years beginning in 2012, 2013 and 2014. Section 467-a was again amended in 2021 to add certain requirements regarding the payment of prevailing wage to building service employees and the certification and verification of the primary residence status of an owner. Section 467-a authorizes the Commissioner of Finance of the City of New York to promulgate rules necessary to effectuate the purposes of the law. These rules are intended to clarify the criteria for eligibility for the abatement and the requirements concerning application for the abatement for fiscal years beginning in 2012, 2013 and 2014.
(Amended City Record 4/27/2022, eff. 5/27/2022)
Unless the context requires otherwise, as used in this chapter:
"Abatement" means the partial tax abatement for residential real property held in the cooperative or condominium form of ownership authorized by § 467-a of the Real Property Tax Law. As used in this chapter, the term "abatement" includes both the "primary residence abatement" and the "non-primary residence abatement."
"Administrative Code" means the Administrative Code of the City of New York.
"Assessed value" means the actual assessed value of real property, which is not reduced by any exemption from real property taxes.
"Authorized agent" means any person authorized by the board to act on the board's behalf with respect to an application for an abatement, including, but not limited to, a managing agent.
"Board" means, in the case of real property held in the cooperative form of ownership, the board of directors of the cooperative, and in the case of real property held in the condominium form of ownership, the board of managers of the condominium.
"Building service employee" means any person who is regularly employed at a building who performs work in connection with the care or maintenance of such building. "Building service employee" includes, but is not limited to, watchman, guard, doorman, building cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator operator and starter, and window cleaner, provided that the classification of work performed by such person is identified on the building service employee schedule, and provided, further, that "building service employee" shall not include persons regularly scheduled to work fewer than eight hours per week in the building.
"Building service employee schedule" means the schedule of wage rates and supplemental benefit rates for building service employees published by the Comptroller on an annual basis pursuant to paragraph (a) of subdivision 1 of § 234 of the Labor Law.
"Commissioner" means the Commissioner of Finance of the City of New York and any employee of the Department of Finance authorized by the Commissioner to act on his or her behalf.
"Comptroller" means the Comptroller of the City of New York.
"Department" means the Department of Finance of the City of New York.
"Designated property" means real property designated as class two, pursuant to § 1802 of the Real Property Tax Law, held in the cooperative or condominium form of ownership.
"Dwelling unit" means a unit used primarily for residential purposes in residential real property designated as class two real property under § 1802 of the Real Property Tax Law that is held in the cooperative or condominium form of ownership, and does not include a unit used primarily for professional or commercial purposes or used solely for parking vehicles or for storage.
"Fiscal year 2011/12" means the fiscal year that begins on July 1, 2011 and ends on June 30, 2012.
"Fiscal year 2012/13" means the fiscal year that begins on July 1, 2012 and ends on June 30, 2013.
"Fiscal year 2013/14" means the fiscal year that begins on July 1, 2013 and ends on June 30, 2014.
"Fiscal year 2014/15" means the fiscal year that begins on July 1, 2014 and ends on June 30, 2015.
"Fiscal year 2021/22" means the fiscal year that begins on July 1, 2021 and ends on June 30, 2022.
"Fiscal year 2022/23" means the fiscal year that begins on July 1, 2022 and ends on June 30, 2023.
"Fiscal year 2023/24" means the fiscal year that begins on July 1, 2023 and ends on June 30, 2024.
"Law enforcement officer" means anyone who is, or was, employed as a Federal, State or local judge, prosecutor, State or Local police or peace officer or Federal law enforcement officer as defined by the United States Code.
"Owner" means the owner, in whole or in part, of a dwelling unit in real property held in the condominium form of ownership, or a tenant-stockholder of a cooperative apartment corporation who owns, in whole or in part, a dwelling unit, as represented by his or her shares of stock in such cooperative apartment corporation. For purposes of these rules, with respect to any dwelling unit, or the shares representing a dwelling unit, held in trust solely for the benefit of a person or persons who would otherwise be eligible for an abatement pursuant to these rules were such person or persons the owner or owners of such dwelling unit, such person or persons are each deemed to be an "owner" of the dwelling unit. With respect to any dwelling unit, or the shares representing a dwelling unit, held in trust, the trustee or trustees of the trust are each deemed to be an "owner" of the dwelling unit. The holder or holders of a life estate in a dwelling unit are deemed to be "owner(s)" of the dwelling unit. An "owner" can only be an individual, and cannot be a corporation, partnership or any other entity, unless a waiver is granted pursuant to Subdivision (d) of 19 RCNY § 50-05 for a limited liability company or limited partnership.
"Prevailing wage" means the rate of wages and supplemental benefits paid in the locality to workers in the same trade or occupation and annually determined by the Comptroller in accordance with the provisions of § 234 of the Labor Law.
"Primary residence" means the dwelling unit in which the owner of the dwelling unit actually resides and maintains a permanent and continuous physical presence.
"Qualified property" means (i) a designated property with an average unit assessed value of less than or equal to $60,000; or (ii) a designated property with an average unit assessed value of more than $60,000 and less than or equal to $100,000, and less than 30 dwelling units; or (iii) a designated property with respect to which an applicant has submitted an affidavit required under § 467-a of the Real Property Tax Law certifying that all building service employees employed or to be employed at the property shall receive the applicable prevailing wage for the duration of such property's tax abatement.
"Regularly employed" means employed for a period of at least 90 days.
"Sponsors" means persons or business entities who make or take part in a public offering or sale of securities consisting primarily of shares or investments in real estate, including condominium units and other cooperative interests in realty. Sponsors will be deemed to include successors who succeed to the rights and assume the obligations of sponsors.
"Taxable status date" for a fiscal year means the January 5 that immediately precedes the commencement of such fiscal year. The taxable status date is the date as of which the condition and ownership of real property is considered for the purposes of determining the eligibility of a dwelling unit for the abatement for such fiscal year.
(Amended City Record 4/19/2019, eff. 5/19/2019; amended City Record 4/27/2022, eff. 5/27/2022)
(a) Primary residence abatement. Dwelling units owned by an owner, one of which is the primary residence of such owner, and which are not ineligible for the abatement pursuant to this section or § 467-a of the Real Property Tax Law, will be eligible to receive the primary residence abatement, in the amount set forth in 19 RCNY § 50-04(b), but in no case will any of the dwelling units owned by the same owner in a condominium development or a cooperative apartment corporation development receive the primary residence abatement if the owner owns more than three dwelling units in the development.
(b) Non-primary residence abatement. Any dwelling units that are owned by an owner in a condominium development or a cooperative apartment corporation development and which received the abatement in fiscal year 2011/12 and are otherwise eligible for the abatement, but are not eligible to receive the primary residence abatement pursuant to subdivision (a) of this section, will be eligible to receive only the non-primary residence abatement, in the amount set forth in 19 RCNY § 50-04(b), but in no case will any of the dwelling units owned by the same owner in a condominium development or a cooperative apartment corporation development receive the non-primary residence abatement if the owner owns more than three dwelling units in the development.
(c) Ineligibility of dwelling units in property receiving other exemption or abatement.
(1) Other exemption or abatement. Except as provided in paragraph (2) of this subdivision, a condominium dwelling unit that is receiving a complete or partial real property tax exemption or abatement pursuant to any other State or local law, or a dwelling unit located in real property held in the cooperative form of ownership that is receiving a complete or partial real property tax exemption or abatement pursuant to any other State or local law, will not be eligible to receive the abatement.
(2) Exceptions.
(i) For purposes of paragraph (1) of this subdivision, a condominium dwelling unit or property held in the cooperative form of ownership will be deemed not to be receiving complete or partial real property tax exemption or tax abatement if such unit or property is receiving benefits pursuant to any of the following sections of the Real Property Tax Law:
(A) § 400 (real property owned by United States);
(B) § 402 (United States or New York State property held under contract of sale):
(C) § 404 (real property owned by the State of New York);
(D) § 406 (real property owned by a municipal corporation);
(E) § 408 (real property owned by school districts and boards of cooperative educational services);
(F) § 410 (real property owned by special districts or property owners therein within district boundaries);
(G) § 410-a (real property owned by special districts or property owners therein not within district boundaries);
(H) § 412 (real property owned by public authorities);
(I) § 412-a (real property owned by industrial development agencies);
(J) § 416 (real property owned by the United Nations);
(K) § 418 (real property owned by foreign governments);
(L) § 420-a (real property owned by nonprofit organizations - mandatory class);
(M) § 420-b (real property owned by nonprofit organizations - permissive class);
(N) § 436 (real property owned by officers of religious denominations);
(O) § 458 (real property owned by veterans);
(P) § 458-a (real property owned by veterans - alternative exemption);
(Q) § 462 (real property owned by religious corporations and used for residential purposes); (R) § 467 (real property owned by persons sixty-five years of age or over);
(S) § 467-b (tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities);
(T) § 499-bbb (green roof tax abatement); and
(U) § 499-bbbb (solar electric generating system tax abatement).
(ii) For purposes of paragraph (1) of this subdivision, a condominium dwelling unit or property held in the cooperative form of ownership will be deemed not to be receiving complete or partial real property tax exemption or tax abatement if such unit or property is receiving a tax abatement, but not an exemption, pursuant to § 489 of the Real Property Tax Law (alterations and improvements to multiple dwellings to eliminate fire and health hazards).
(d) Ineligibility based on ownership of more than three dwelling units in the same development.
(1) A dwelling unit will not be eligible for the abatement if, as of the applicable taxable status date, any owner of such dwelling unit is the owner, in whole or in part, of more than three dwelling units in the same condominium development or cooperative apartment corporation development. In such cases, none of the dwelling units owned by any such owner will be eligible for the abatement.
(2) In the following examples, assuming the board applies for the abatement for fiscal year 2013/14, the eligibility of the owner for an abatement will be determined as follows: Example 1: A owns unit 101 in X Condominium Development. A also owns dwelling units 102 and 103 and a 30% ownership interest in unit 104, all in the same development as dwelling unit 101. No abatement will be granted for any of the dwelling units owned by A because A owns, in whole or in part, more than three dwelling units in the same development. Example 2: Assume the same facts as in Example 1, except that A has no ownership interest in dwelling unit 104. The abatement may be granted for all of the dwelling units owned by A because A owns a total of only three dwelling units and therefore does not own more than three dwelling units in the same development. Example 3: A owns dwelling units 101, 102 and 103, located in Building 1, which is included in Y Cooperative Corporation Development. A also owns dwelling unit 201, which is located in Building 2 in Y Cooperative Corporation Development. No abatement will be granted for any of the dwelling units owned by A because A owns more than three dwelling units in the same development. Example 4: A and B together own dwelling unit 101 in Z Condominium Development. B alone also owns dwelling units 102, 103 and 104, which are all located in Z Condominium Development. No abatement will be granted for dwelling unit 101 or any of the other dwelling units owned by B because B, an owner of dwelling unit 101, owns, in whole or in part, more than three dwelling units in the same development.
(e) Ineligibility of dwelling unit transferred for purpose of receiving abatement.
(1) Determination by Commissioner. An application for abatement will be denied, and an abatement granted will be revoked retroactively, for any fiscal year, in the event that the Commissioner determines that the transfer of such dwelling unit to the owner who owned such dwelling unit as of the applicable taxable status date for such fiscal year was made primarily for the purpose of receiving the abatement.
(2) Basis for determination by Commissioner. In making such determination, the Commissioner may consider, among other factors, the relationship, if any, between the transferor and the transferee and whether the terms of the transfer are consistent with the terms generally found in transfers of comparable dwelling units.
(3) Restoration of taxes upon revocation of abatement. If an abatement is revoked retroactively pursuant to paragraph (1) of this subdivision, then the real property taxes that were abated will be restored with interest at the rate applicable by law to real property taxes on the affected real property accrued from the date on which such restored taxes would have been due and payable had the abatement not been granted, to the date of payment. Any such restored real property taxes and interest will be enforceable as a tax lien in accordance with the provisions of Chapters 3 and 4 of Title 11 of the Administrative Code.
(f) Sponsors. A dwelling unit owned by a party who is a sponsor in property held in the cooperative or condominium form of ownership as to which such party is a sponsor is not eligible to receive the abatement.
(g) Qualified property requirement. For fiscal year 2022/23 and all subsequent fiscal years, no dwelling unit in a designated property other than a qualified property shall be eligible to receive an abatement.
(Amended City Record 4/27/2022, eff. 5/27/2022)
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