Cooperative and Condominium Property Tax Abatement

The development must be a tax class 2 property.

The development cannot be receiving the J-51 exemption or the 420c, 421a, 421b, or 421g commercial tax benefits. However, you can apply if these benefits are due to expire on June 30 of the tax year in which you are applying.

Properties associated with any of the following are not eligible:

• 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)

If the development is not currently receiving the abatement, the board or managing agent can apply by submitting the Cooperative Property Tax Abatement Initial Application or Condominium Property Tax Abatement Initial Application. (These applications will be available soon.)

The unit may be eligible for the abatement if:

• The unit is the owner’s primary residence.
• The owners do not own more than three residential units in any one development.
• The owner has filed a real property transfer tax form or deed with the Division of Land Records at www.nyc.gov/acris. (This requirement applies to condominiums. The filing is generally done at the time of purchase, often by a title company or attorney on the owner’s behalf.)
• The owner is not receiving the clergy property tax exemption.
• The unit is not owned by a business, such as an LLC, or held by a sponsor or their successors in interest. (There are limited exceptions for LLC ownership and limited partnership ownership due to security concerns. More information is available on the Cooperative/Condominium Abatement Security Waiver Application form.)

The owner must have purchased the unit on or before January 5 to qualify for the abatement for the upcoming tax year, which begins on July 1. Those who purchase their units after January 5 can apply for the following tax year. If the unit is owned by a trust, it must be the primary residence of the trustee, all of the trust’s beneficiaries, or the life estate holder.

The amount unit owners can save with the abatement depends on the average assessed value of the residential units in the co-op or condo development:

The co-op or condo’s board or managing agents are responsible for applying for the abatement on behalf of the entire development. The unit owner must certify that the unit is their primary residence to the board or managing agent, who then must attest to the primary residency of unit owners.

If the development is not currently receiving the abatement, the board or managing agent can apply by submitting the Cooperative Property Tax Abatement Initial Application or Condominium Property Tax Abatement Initial Application.

The board or managing agent must submit an initial application if the development has never received the abatement, or if you previously received it but later opted out.

The development may also be required to submit a prevailing wage affidavit, as described in the section below.

The abatement must be renewed each year. The co-op or condo’s board or managing agents are responsible for renewing the abatement—not the individual unit owners.

For fast, easy processing, submit the renewal online. For instructions on how to file the SmartFile renewal application, please review the Renewal Guide for Managing Agents.

Each December, the Department of Finance will send managing agents and boards a letter outlining each unit’s tax savings. The agent or board must use this information to report to DOF any changes in ownership or eligibility.

If there are changes in the ownership of a unit, the following can be used to demonstrate proof of residency:

1. Driver’s license
2. NYC voter registration
3. Managing agent attestation

Certain properties must submit a prevailing wage affidavit to qualify for the Cooperative and Condominium Property Tax Abatement. The filing period ends on February 15.

An authorized agent or officer should submit the prevailing wage affidavit online. (The online affidavit will be available soon.) Before submitting the affidavit, check to make sure that your development is on the list of developments that are required to file.

Your development will be required to file if:

• The property has 30 or more residential units and the average assessed value per unit is over $60,000, or
• The property has fewer than 30 residential units and the average assessed value per unit is over $100,000.

To calculate the average unit assessed value, multiply the total assessed value by the residential percentage (based on shares or common interest), then divide by the number of residential units.

The list of developments required to file is updated each January, following the release of the tentative property tax roll. We will notify you if changes to the development’s assessed value, such as those resulting from Tax Commission actions, should affect whether you are required to file the prevailing wage affidavit.

If a property is required to file a prevailing wage affidavit, but no longer wishes to receive the co-op/condo abatement, the building representative should complete the Co-op/Condo Tax Abatement Benefit Opt-Out Form, which will be available soon.

If you have opted out of the abatement in the past, the development must file an initial application to reapply.

The Managing Agent and Self-Managed Authorization Form can be used to allow managing agents or officers to represent a building to file applications and other relevant materials pertaining to unit owners’ eligibility for the Cooperative and Condominium Property Tax Abatement.

• Cooperative/Condominium Abatement Security Waiver Application
• Application to Remove Previously Granted Exemption(s)
• Application to Remove Previously Granted Exemption(s) — PDF version
• Application to Remove Previously Granted Exemption(s) for Co-op Units