SUPERSTORM SANDY TAX RELIEF

News

New York City homeowners hit by Hurricane Sandy are spared a property tax hike under a new legislation which provides relief to residents of NYC subject to higher property taxes as a result of repairs to homes severely damaged by Superstorm Sandy.
The tax break will affect about 1684 buildings, whose owners will save $1077 on average, officials said.

The new legislation was unveiled by both the Mayor and the Governor of New York in April at the 2014 NY Rising Community Reconstruction Spring Conference in Albany.

As the assessed value of a property may have increased after repairs or reconstruction undertaken in the wake of Superstorm Sandy, some homeowners whose homes were damaged during the storm are now subject to higher property tax bills -- even if the homeowner only restored the building to its condition prior to the storm.

The new law (A.9578-A / S.7257-A) signed by Governor Cuomo allows for a partial abatement of property taxes for certain properties that were damaged by Sandy and that have since been repaired. The law will provide relief to New York City residents affected by the storm whose property tax bill in City Fiscal Year 2015 is greater than the corresponding tax liability from CFY2013.

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 fiscal year 2014 from the assessed valuation for fiscal year 2013 as a result of damage caused by Superstorm Sandy.
· The Department of Finance increased the assessed valuation of the building for fiscal year 2015 from its assessed valuation for fiscal year 2014; and
· The assessed valuation of the building for fiscal year 2015 exceeds that for fiscal year 2013.

The abatement will appear on impacted homeowners' July property tax bills. Homeowners with questions can call 311 or visit the NYC Department of Finance website at NYC.gov/finance.

In the event that the repair or rebuilding resulted in an increase in the square footage of the affected building, the bill provides for a proportional decrease in the amount of the abatement to reflect the increase in the square footage of the building.

The Governor signed the legislation at the newly reopened three acre waterfront park located along the Kill Van Kull on the North Shore of Staten Island. The Park is recognized by the Trust for Public Land as the first post-Hurricane Sandy resilient waterfront park and was designed to ensure minimal flooding in the event of future storms. Resiliency measures taken include designing the Park with 2-3 feet of additional soil composition to absorb excess rain water and see level. The permeable soil will absorb significant amounts of water without the need for drains and acts as a buffer that protects the inland businesses and homes on the north shore of Staten Island in the event of a significant coastal storm.