Q&A
Tax implications of converting basements/cellars into legal apartments
1:02:52
·
117 sec
Council Member Pierina Sanchez inquires about the potential tax implications of converting basements or cellars into legal apartments. Officials from HPD and DCP provide insights on the expected impact on property taxes.
- For ADUs remaining in class 1 dwellings, no significant difference in tax liability is expected
- The state has passed legislation allowing NYC to opt into a program offering tax exemptions for ADUs, which could be discussed with the City Council
- Department of Finance clarified that there will be no increase in assessed value and taxes merely due to zoning changes
- Tax assessments may only be affected if and when actual property modifications are made for ADUs
Pierina Sanchez
1:02:52
Got it.
1:02:52
Thank you.
1:02:59
I know I know this, question came up during the marathon hearings that we had on, City of Yes with, chairs Gorodnik and commissioner, Carreon.
1:03:10
But do you have any further, have you had any further conversations with the Department of Finance or, others within the administration on how converting existing base under sellers into apartments could impact the tax assessment of the property?
Kim Darga
1:03:25
So we have talked about this, a little bit.
1:03:27
We don't right now for an AGU that remaining class 1 dwelling.
1:03:33
We don't expect there to be a significant difference.
1:03:39
Though, you know, under this, the state actually passed authorizing legislation last year that would allow New York City to opt in to a program that would offer a tax exemption that's certainly something we're willing to discuss with city council.
1:03:54
But from what we have seen so far, we don't expect there to be a significant increase in tax liability because the property class tax will not our tax class will not change.
1:04:06
Sure.
1:04:06
And, my colleague from DCP wants to ask.
John Mangin
1:04:09
Thanks.
1:04:09
Just one small addition.
1:04:11
City planning spoke with Department of Finance on this on this issue a few months back, and they clarified that there will will be no increase in assessed value and taxes merely
Jumaane Williams
1:04:25
with
John Mangin
1:04:25
the zoning change.
1:04:26
It's only if and when somebody actually does something to the property, as an ADU that it could affect assessed value, and and taxes.
1:04:36
So that'll be one of the things that homeowners can take into consideration, when they're when they're making that decision.
1:04:41
The only instance when zoning itself affects assessed value in taxes is in the case of a vacant lot.
1:04:48
They made clear to us.
