The following information is reflective of the date that it was published, and does not constitute legal advice. Any questions about such matters should be directed to an attorney in order to discuss their specific circumstances
The 467-a New York City Cooperative/Condominium Tax Abatement allows individuals whose primary residence is a cooperative or condominium unit in New York City to realize savings on their annual property taxes. The cooperative/condominium board, or its managing agent, is responsible for applying for the abatement with the New York Department of Finance on behalf of all qualifying units within the building. Any unit owner who wishes to receive the abatement should inform their development that the unit is their primary residence, so that the development includes the unit owner in the development’s application. The Coop/Condo Tax Abatement was first instituted in 1996 and has been extended eight times. It is currently effective until June 30, 2026.
To qualify for the abatement, a unit owner must meet the following requirements:
- The unit owner must be an individual, not an LLC or corporation.
- A trust may qualify if all beneficiaries of the trust use the unit as their primary residence.
- The sponsor, and its successors in interest, may not qualify.
- The unit owner cannot own more than three units in the development, one of which must be their primary residence.
- The unit must be in Tax Class 2.
- Real Property Transfer Tax forms—or a Deed—must be filed with ACRIS on or before January 5 of the year in which an abatement on that unit is sought. Individuals who miss the deadline may file for the abatement by January 5 of the following year to begin receiving the abatement in that year.
- The unit owner must inform the development by February 15 of the year in which an abatement is sought that the unit is their primary residence.
- Individuals receiving a clergy property tax exemption do not qualify for the abatement.
The development must meet the following additional requirements for units within the building to receive the abatement:
- The development must apply for or renew the abatement by February 15 (or the following business day, if that date is a weekend or holiday).
- A prevailing wage affidavit must be filed for most developments, indicating that the building pays its workers in accordance with NYC Prevailing Wage laws.
- Certain buildings will not qualify for the 467-a Coop/Condo Tax Abatement:
- Buildings receiving the J-51, 420-c, 421-a, 421-b, and 421-g abatements cannot benefit from the 467-a Coop/Condo Tax Abatement.
- Buildings associated with the following also cannot receive the Coop/Condo Tax Abatement:
- Housing development fund corporations (HDFC).
- Limited dividend housing companies.
- Redevelopment companies.
- Mitchell-Lama buildings.
- Division of Alternative Management Programs (DAMP).
- Urban Development Action Area Program (UDAAP).
Unit owners may realize an abatement to their property tax bill based on the assessed value of their unit. The following chart displays abatement percentages:
| Average Assessed Value | Abatement Percentage |
| $50,000 or less | 28.1% |
| $50,001 to $55,000 | 25.2% |
| $55,001 to $60,000 | 22.5% |
| $60,001 or more | 17.5% |
Attorneys, brokers, and their clients can coordinate their corresponding rights and obligations under the abatement rule by including provisions in the real estate contract to address pending or shared abatements, as well as abatements that are denied due to the fault of the seller or development. Purchasers should inquire whether a building qualifies for the abatement, and additionally whether the previous owner of their prospective unit was receiving the abatement. New owners should also be sure to promptly inform their development that their unit is being used as their primary residence. Failing to inform the development by the February 15 deadline will disqualify an owner from receiving the abatement.
Source:
N.Y. Real. Prop. Tax Law § 467-a (McKinney 2023).