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205 West End Avenue Owners Corp. Cooperative Tax Abatement and Special Assessment

posted May 15, 2017, 3:47 PM by Marc Donner   [ updated May 16, 2017, 6:06 AM by 205 West End Avenue Owners Corporation ]
Dear Shareholder:

The New York City Department of Finance has announced the various tax benefits due to Shareholders of residential co-ops for the City’s 2016/2017 fiscal year, which ends on June 30th.  The most common tax benefit is the annual Cooperative Tax Abatement, which is partial tax relief for Shareholders of cooperative units.  Sponsor units, and Shareholders who own more than three apartments in the building, are not eligible for the tax abatement. 

The amount of the tax abatement is based on the number of shares each Shareholder owns in the cooperative corporation.  In addition, based on eligibility, some Shareholders will also receive School Tax Relief (STAR), Senior Citizen Exemption (SCHE), Disability Exemption (DHE), or Veteran Exemptions. For more information on these tax exemptions, please visit the NYC Department of Finance website at: 

http://www1.nyc.gov/site/finance/benefits/landlords.page

Additionally, the Cooperative Tax Abatement program was modified four years ago and non-primary residences are no longer eligible for the tax abatement credit. In order to qualify for the Cooperative Tax Abatement, your apartment must be your primary residence. For cooperatives that assess against the tax abatement, the assessment for non-primary residents will not be offset by a tax credit.

As has been the case in prior years, the Board of Directors has determined to implement a one-time special assessment, on a per share basis, that will approximate the amount of the Cooperative Tax Abatement (for those who are eligible).  This decision will help offset increases in the operating costs of the corporation.  Based on these abatement figures, the assessment will be $4.2864 per share.  The 2016/17 tax benefits(s), and the relevant operating assessment, will be reflected on your June maintenance statement. 

Please note that if you receive any credits in addition to the Cooperative Tax Abatement (such as STAR, SCHE, DHE, or Veteran), then your operating assessment will be slightly higher than the Cooperative Tax Abatement.  This is due to the fact that the City reduces the amount of the abatement credit when additional benefits are applied; however, the total amount of credits will be more than the assessment (resulting in a net credit).

Please feel free to contact me should you have any questions.  I can be reached at (212) 580-5600.

Sincerely,

Mark Weil

Vice President

205 West End Avenue Owners Corporation
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