WASHINGTON, D.C. – May 20, 2014 – (RealEstateRama) — Speaker Sheldon Silver announced the passage of legislation that will help to streamline the recovery process and prioritize rebuilding efforts following Hurricane Sandy. This legislation (A.9578) authorizes New York City to grant partial abatement of taxes on real property that was seriously damaged during the storm and has since been rebuilt.
“Hurricane Sandy was the worst natural disaster to hit New York City. Property owners experienced significant losses and have faced unspeakable hardships. Unfortunately, our existing tax assessment structure would unfairly penalize property owners that rebuilt their homes and businesses after the storm by saddling them with tax increases,” said Silver. “This legislation is critical for families and business owners. It is an essential step toward getting our hard-hit communities back on their feet.”
Under the existing law, tax increases would be imposed on property owners that rebuilt after the storm. Even if the repair or rebuilding merely restored a building to its condition prior to the storm, the assessed valuation and therefore, the real property taxes, would be higher in fiscal year 2015 than in fiscal year 2013. In order to assist property owners, this bill authorizes New York City to enact a local law granting a partial abatement of taxes on property that meet the following criteria:
the Department of Finance reduced the assessed valuation of the building on the property for fiscal year 2014 from the assessed valuation for fiscal year 2013 as a result of damage caused by Hurricane Sandy;
the Department of Finance increased the assessed valuation of the building for fiscal year 2015 fromits assessed valuation for fiscal year 2014; and
the assessed valuation of the building for fiscal year 2015 exceeds that for fiscal year 2013.
