Property Tax Relief for Sandy Victims

Tax Relief For Sandy Homeowners

Mayor de Blasio joined Governor Andrew Cuomo in Albany to announce state legislation that would provide vital property tax relief to New York City homeowners who rebuilt or repaired their homes after Hurricane Sandy and who are facing a large increase in their property tax bills in City Fiscal Year (CFY) 2015. The legislation, which has broad bipartisan support, would lower a homeowner’s property tax liability for CFY 2015 to the pre-storm, CFY 2013 amount.

Under current law, New York City residents who merely restored a building to its condition prior to the storm will face an increase in their property’s assessed valuation and will, therefore, face an increase in real property taxes. In order to assist these property owners, this bill authorizes New York City to enact a local law granting a partial abatement of real property taxes, so that the owners of these properties will not incur such an increase in real property taxes for CFY 2015.

To qualify for the abatement, an eligible property must meet the following criteria:

The Department of Finance reduced the assessed valuation of the building on the property for CFY 2014 from the assessed valuation for CFY 2013 as a result of damage caused by Hurricane Sandy.

The Department of Finance increased the assessed valuation of the building for CFY 2015 from its assessed valuation for CFY 2014.

The assessed valuation of the building for CFY 2015 exceeds that for CFY 2013.

In the event that the repair or rebuilding resulted in an increase in the square footage of the affected building, the bill provides for a proportional decrease in the amount of the abatement to reflect the increase in the square footage of the building.

“New Yorkers impacted by Sandy are still struggling to get back on their feet. They shouldn’t be asked to pay higher taxes on top of the countless expenses they’ve already faced,” said Mayor Bill de Blasio. “I’m glad to have the Governor and such a broad, bipartisan coalition of legislators on board as we move forward this vital property tax relief for New Yorkers who need it most.”