State Sen. Tony Avella, D-Bayside, said he plans to propose a bill that would create a new property tax class for co-ops and condominiums following a recent peak in assessed property values.
Under Avella’s legislation, the Class One-A tax class would be created for co-ops and condos.
“Co-op and condo owners should have the same property tax breaks as one, two and three-family homeowners,” he said. “Unfortunately, the tax code places these housing units in a much higher tax bracket and equates them with landlord operated rental buildings. As a result, their property taxes are much higher.”
Avella said he believed that forming the new tax class is the best of several options to address the issue.
“Reducing their property tax can be accomplished in several ways by either placing them in Class 1, which is one, two and three family homes, or by creating a new class, which only includes co-ops and condos,” he said. “I believe the latter is the best approach and one that could be passed by the Legislature quickly.”
The senator’s bill would provide the same property tax caps that exist for Class 1 Properties, capping single yearly tax increases at 6 percent. There would also be a 20 percent cap for a five-year period.
Elected officials from northeast Queens slammed the city earlier this year following an increase in assessed valuations. Co-ops and condos collect funds for real property tax increases through higher maintenance fees for shareholders.
The city’s Department of Finance explained that the increases could have been caused by a computer “glitch.”
City Councilman Mark Weprin, D-Oakland Gardens, has planned a rally with co-ops and condo shareholders on Sunday at City Hall to protest the property tax increases. The Council will hold a hearing on the increases on May 2.