The Department of Finance has a number of benefits for property owners that many may not know about, so we’ve decided to break it down.
The exemptions below lower the amount of tax you owe by reducing your property’s assessed value:
- Clergy Exemption
The exemption provides a $1,500 property tax exemption on a property owned by a member of the clergy. Owners of co-ops are not eligible for the clergy exemption. If the clergy member is deceased, an unmarried surviving spouse can also get the exemption.
Requirements:
- Residency: The clergy member (or unmarried surviving spouse) must be a resident of the New York State.
- Occupation: The clergy member’s main job must be working for the denomination s/he belongs to.
- Age: If retired, the clergy member’s main job must be working for the denomination s/he belongs too.
- Cooperative & Condominium Abatement
Owners of cooperative units and condominiums who meet the requirements for the Cooperative and Condominium Property Tax Abatement can have their property taxes reduced. The amount of the abatement is based on the average assessed value of the residential units in the development.
Abatement percentages are as follows:
Average Assessed Value | Benefit Amount Per Year
$50,000 or less 28.1%
$50,001 – $55,000 25.2%
$55,001 – $60,000 22.5%
$60,001 and above 17.5%
- Disabled Crime Victim/Good Samaritan Exemption
This exemption is for a victim of a crime who became physically disabled as a result of the crime. This benefit is also for someone who becomes disabled by:
- trying to stop a person who has committed a crime;
- trying to prevent a crime from happening; or
- trying to help a law enforcement officer make an arrest
- Disabled Homeowners Exemption
A property tax break for disabled New Yorkers who own one-, two-, or three-family homes, condominiums, or cooperative apartments.
Thanks to changes in city and state law, the DHE and SCHE (Senior Citizen Homeowners’ Exemption) tax breaks are now available to homeowners with a combined annual income of $58,399 or less.
- Green Roof Abatement
This program provides a one-time property tax abatement for properties that have green roofs. Green roofs have vegetation that absorbs rainwater, provides insulation and combats “the heat island effect”, where urban environments can have higher temperatures than surrounding areas.
Benefit:
- The tax abatement is equal to $4.50 per square foot of green roof space. The benefit is capped at whichever is less: $100,000 or the amount of property taxes due for the building that tax year.
- Condominium abatements are divided among the individual condominium units.
The abatement length is one year.
- NYC Department of Buildings (DOB) determines eligibility and approves the application. The Department of Finance administers the benefit.
- Major Capital Improvement (MCI) Abatement
The application for the Major Capital Improvement (MCI) Abatement is now available online. This abatement will be granted for major capital improvements approved by the New York State Division of Housing and Community Renewal (DHCR) after June 15, 2015. Qualified properties will be eligible for the abatement for one tax year. Please see below for frequently asked questions. You can find additional information in the MCI guidelines or the online application’s user guide.
- Rent Freeze Program for Seniors
Information for Property Owners and Managing Agents
This program is for Senior Citizen tenants who qualify to have their rent frozen at their current level and be exempt from future rent increases. The program will pay for rent increases by applying credits to the landlord’s property tax bill. For more information you can download the SCRIE/DRIE Brochure for Tenants/Landlords.
Notification of a Tenant’s SCRIE Approval
Once a tenant applies and is approved for SCRIE, we send a notification letter to the tenant and the owner/landlord. The letter will show:
- The exemption period;
- The amount the tenant is responsible for paying;
- The tax abatement credit (TAC) the landlord will be credited for that tenant.
- Rent Freeze Program for people with disabilities
This program is for tenants with a disability who qualify to have their rent frozen at their current level and be exempt from future rent increases. The program covers legal increases in your rent by applying credits to your property tax bill. For more information you can download the SCRIE/DRIE Brochure for Tenants/Landlords.
Notification of a Tenant’s DRIE Approval
Once a tenant applies and is approved for DRIE, we send a notification letter to the tenant and the owner/landlord. The letter will show:
- The exemption benefit period;
- The amount the tenant is responsible for paying;
- The tax abatement credit (TAC) the landlord will be credited for that tenant.
- School Tax Relief (STAR)
Homeowners not currently receiving STAR who meet the program’s eligibility requirements may apply for the STAR tax credit with the New York State Department of Taxation and Finance. More information is available at www.tax.ny.gov/star or by calling (518) 457-2036.
New York State recently announced changes regarding the income verification process for those property owners who receive the Enhanced STAR benefit. New York State already verifies income for all New York City ESTAR recipients. If you are already receiving ESTAR, you do not need to take any further action. If additional information is needed in the future, you will be contacted.
You may apply for STAR or E-STAR with the NYC Department of Finance if:
You owned the property and received STAR in 2015-16 but later lost the benefit and would like to apply to have it restored.
You currently receive STAR and would like to apply for Enhanced STAR. You may be eligible for Enhanced STAR if the total household income of all owners and resident spouses or registered domestic partners does not exceed $86,300.
Separate STAR and E-STAR applications will be posted soon. For now, you may use the current combined STAR and E-STAR application. However, please note two changes for E-STAR effective as of July 2018:
The income ceiling for Enhanced STAR has increased from $86,000 to $86,300.
Once the Department of Finance approves your initial Enhanced STAR application, the New York State Department of Taxation and Finance will automatically verify your income annually using Internal Revenue Service data to determine your continued eligibility. Enrollment in the automatic income verification program is mandatory for E-STAR applicants.
- Senior Citizen Homeowner’s Exemption
A property tax break for seniors who own one-, two-, or three-family homes, condominiums, or cooperative apartments.
Thanks to changes in city and state law, the DHE and SCHE (Senior Citizen Homeowners’ Exemption) tax breaks are now available to homeowners with a combined annual income of $58,399 or less
- Solar Roof Abatement
Provides a property tax abatement to properties that use solar power. Solar power is a reliable, renewable source of electricity. Solar panels generate electricity, recover thermal energy for reuse and act as a roof covering. Using Solar power reduces demand on New York City’s electrical grid.
Eligibility:
NYC Department of Buildings (DOB) determines eligibility and approves the application while the Department of Finance administers the benefit.
Class 1, 2 and 4 properties
If you receive ICAP, 421-a, 421-b, 421-g or pay PILOTs, your property is NOT eligible for the Solar Electric Generating System Tax Abatement
- Veterans Exemption
Qualifying veterans and their family members are eligible for property tax breaks in New York City.
Call Martino Realty on Staten Island for more information!
If you are looking to buy or sell please don’t hesitate to give us a call (718) 608-9400
