On Wednesday, Mayor Bill de Blasio signed legislation into law to provide property tax relief to property owners subject to higher property taxes as a result of repairs to homes severely damaged by Hurricane Sandy. The abatement was proposed by Mayor de Blasio earlier this year. Today’s bill signing follows state authorization to pass a local law, which was signed by Governor Cuomo last month.
Property owners who repaired or rebuilt their properties after Sandy may be subject to higher property tax bills—even if the homeowner only restored the building to its condition prior to the storm.
The new law signed today by Mayor de Blasio allows for a partial property tax abatement for property owners whose buildings were impacted by Sandy and whose tax bill in City Fiscal Year 2015 is greater than the corresponding tax liability from Fiscal Year 2013.
Property owners will see the abatement on their July tax bills. In the event that the repair or rebuilding resulted in an increase in the square footage of the building, the bill provides for a proportional decrease in the amount of the abatement to reflect the increase in square footage.
To qualify for the tax relief, the property must meet the following criteria:
- The Department of Finance reduced the assessed valuation of the building on the property for FY 2014 from the assessed valuation for FY 2013 as a result of damage caused by Hurricane Sandy.
- DOF increased the assessed valuation of the building for FY 2013 from its assessed valuation for FY 2014.
- The assessed valuation of the building for FY 2015 exceeds that for FY 2013.
“Property owners impacted by Sandy have already gone through so much – but, now, they won’t be forced to pay higher taxes simply because they rebuilt. Thank you to the Governor, Senate, and Assembly for quickly providing state authorization and the Council for passing this bill. Now, our work continues to ensure that all New Yorkers impacted by Sandy get the relief they need and deserve,” said Mayor Bill de Blasio.
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