It’s not exactly the Boston Tea Party, but co-op leaders and legislators have started a tax revolt.
Co-op and condo board presidents met with elected officials and attorneys on Wednesday, February 23 to discuss a possible lawsuit to halt the imposition of what they view as inflated valuation assessments.
“For our assessed market values to skyrocket like this is absolutely shocking, and even the Finance Department seems unable to explain why,” said Senator Toby Ann Stavisky. “It is simply unfair to raise the assessment – and consequently the property taxes – in some cases more than 100 percent on co-ops when the sale prices on these units are actually going down.”
Stavisky had organized the meeting along with Warren Schreiber, president of Bay Terrace Community Alliance, and Bob Friedrich, president of Glen Oaks Village. Attendees discussed the possibility of litigation as a short-term solution and legislation as a long-term solution.
The legislation will attempt to cap assessments for co-ops, create a new tax class for co-ops and expand the appeals process for co-ops.
However, Friedrich said that even before legislation can be discussed the property valuations need to be seriously examined. According to Friedrich, these assessments will have a trickle-down effect – causing economic hardship for families.
“The property valuations that are poised to be imposed on Queens co-ops are terribly flawed and must be stopped,” said Friedrich, who is also the founder of the Presidents Co-op Council. “The consequence of these flawed valuations will lead to unprecedented hikes in property taxes that will force co-ops to impose crushing monthly maintenance increases on their owners. The inevitable result will be enormous hardship for families and seniors that will be irreversible.”
Also in attendance at the meeting were Assemblymembers Grace Meng, David Weprin and Ed Braunstein, along with Councilmembers Mark Weprin and Dan Halloran.
“Clearly, there’s a problem with this system when the market values of co-ops is going up at such a rate, even as sales prices are going down,” said Halloran.
The Department of Finance said in response that it is currently reviewing the properties in question. Spokesperson Owen Stone said that they are not allowed to value co-ops and condos based on what their sales value would be, but rather they base prices on comparable properties and rental properties.
“We are currently reviewing why Queens had a greater anomaly than other areas,” said Stone. “We are looking into it.”
