New York City taxes soar for co-op and condominium owners

If property taxes are keeping you from wanting to own a co-op or condominium, you're not alone. In fact, co-ops and condos end up paying five times more than other homeowners in property taxes, something that has long been regarded as unfair in the state.

Today, in 2017, that may finally be addressed. According to a May 22 report, a group of landlords and activists named Tax Equity Now has stepped forward and filed a lawsuit to seek reform through the courts. The group is angered primarily that homeowners have many tax advantages over those in co-ops, condos or apartments.

The system in New York does tax condo and co-op owners higher than others. In one study, it was shown that New York City has a large discrepancy in tax rates between apartment dwellers and homeowners. That discrepancy is big enough that it's the largest in the United States.

Maybe not surprising to those in New York is that the city also has the highest tax rate on apartments in the United States. It has a tax rate of 5.47 percent. Condos and co-ops see their taxes fluctuate with the pricing of neighborhood rents. The irony of this is that the rents charged are higher due to the high taxes that have to be paid.

If you're considering owning a co-op or condo in New York, keep the above in mind. The tax system there is higher than any other. If you're set to build or own in the city, your attorney can tell you more about what to expect come tax season.

Source: Habitat, "New York City Real Estate Taxes Are the Unfairest of Them All," May 22, 2017