By: Howard Riell
The New York City Council is mulling a pair of bills that, if voted into law, would let citizens defer property taxes — and tenants defer rent payments.
A vote on both bills could happen as early as June 18.
The first one lets owners of properties that have been assessed at over a quarter million dollars to delay payment of the total amount of property taxes. “To qualify, taxpayers would have to show the occupant of the building was affected by limitations on “seating, occupancy or on-premises service limitations” from an executive order by the governor or the mayor between March 7 and June 30, or experienced an “unexpected decline” in income for more than 30 days during that period,” according to therealdeal.com.
Those owners of property who were permitted to put off taxes due on July 1 would be required to pay 25% of their tax bill by Oct. 1, and the rest by May 1. Renters would similarly receive a reprieve from payments during the tax deferral period, “and for three more months after the property owner becomes current on taxes and fees for municipal services such as water and sewer charges. The interest rate for the late rent would be no more than 25 percent of the late interest rate on the deferred taxes,” the web site reported.
The second City Council bill, which was put forward by Public Advocate Jumaane Williams, would defer property taxes on properties worth less than $250,000 without interest. In order to qualify, owners of property in the city must use the property as their primary residence; experience economic hardship as a result of Covid-19; and have a combined income of less than $250,000.
The issue of property taxes is approaching a flashpoint. On Monday, the Real Estate Board of New York (REBNY), the City’s leading real estate trade association, reported that tax revenue generated from investment and residential sales in New York City and New York State decreased by 76% from May 2019 to May 2020, and 40% from April 2020 to May 2020.
These decreases represent a $145 million loss in tax revenue for the City and State year over year, and a $31 million decrease from month to month. Since the start of the crisis in March 2020, there has been a decline of more than $160 million in tax revenue.
“This data confirms the unprecedented economic crisis facing our City and State. Our local economy must reopen in a healthy way. We also need our public officials to put in place policies that will restart such economic activity rather than deepen the crisis,” said REBNY President James Whelan. “Promoting more real estate sales and transactions will produce the tax revenue the City and State need to pay for vital government services from education to infrastructure improvements.”
