State Sen. Tony Avella (D-Bayside) officially announced last week the inclusion of a tax relief program for small homeowners, renters, and co-op and condo owners in this year’s sate budget.
The original proposal entailed tax relief for New York renters, but Avella advocated to expand the income tax credit by introducing legislation to include small homeowners in the city, which include condominiums and cooperative owners.
As a result, the new $85 million “Circuit Breaker” tax relief program will be available to qualifying small homeowners, co-op and condo owners in addition to renters. Qualifying residents will be eligible to receive a refundable tax credit against their personal state income tax.
“The tax relief program will provide a much needed break to both renters and small homeowners at a time when many residents are facing constant increases in their rent and property taxes. Although the credit amount may not be significant, it is a good first step in alleviating some of the financial burden constantly faced by New York City residents,” Avella said last week.
While the final amount per person will depend on individual incomes, property tax rates and property tax equivalent rates, the new program is the first income tax credit for small homeowners, condo and co-op owners, as well as renters, in New York City.
“A tax credit will be welcomed by the many middle-class families living in New York City co-ops and condos. The Co-op and Condo Community appreciates Sen.Avella’s continued advocacy on its behalf said Warren Schreiber, president of the Bay Terrace Co-op.
Bob Freidrich, board president of Glen Oaks Village, was also appreciative: “It’s nice to know that there is an elected representative who understands that the people who live in small homes, co-ops and condos, are often the ones forgotten when we talk about real estate.
“This tax credit is better put to use in the pockets of senior citizens and families who need it,” Freidrich added.
“Small homeowners, co-op and condo owners will be able to get an income tax break that they’ve never had before. This is a huge step in the right direction.”