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Council Member Brannan questions Department of Finance on co-op and condo abatement revenue collection
4:43:35
·
3 min
Council Member Justin Brannan questions Department of Finance officials about revenue collection from removing ineligible co-op and condo abatement recipients. The officials provide details on collection targets, actual revenues, and the process of identifying ineligible recipients.
- The Department of Finance exceeded its revenue target for fiscal year 2023, collecting $1.3 million in tax audit revenues.
- Officials discuss the ongoing process of identifying ineligible abatement recipients, including using tax return addresses as indicators.
- The department clarifies that unit owners are given 30 days to respond to potential abatement removals, not just one week as some constituents had reported.
Justin Brannan
4:43:35
The November 23 plan, DOF had a peg for increased tax revenue due to the removal of ineligible co op and condo abatement recipients.
4:43:45
This PEG projected 7 and a half million in additional tax revenue.
4:43:49
Could you tell us about that?
4:43:52
Yep.
4:43:52
How much tax revenue was collected as a
Preston Niblack
4:43:54
result of that PEG?
4:43:55
We've been, excuse me, meeting our additional revenue targets there.
4:44:02
And in fact, last year we collected, believe, $10,000,000.
4:44:08
Again, 7.5.
4:44:09
I'm sorry, Jackie.
4:44:09
I'll let Jackie answer this question.
Jacqueline James
4:44:11
So for our revenue target for fiscal twenty three, our target for '23 was 1,200,000.0.
4:44:17
We collected $1,300,000 in tax audit revenues.
4:44:20
In fiscal twenty sixty '8 million and so far we are I'm sorry.
4:44:28
Our target is 747,000,000 and so far we're on target for September.
4:44:33
That was '24.
4:44:34
In fiscal twenty five, our target is 08/25 and we've already collected $710,000,000.
Justin Brannan
4:44:41
How many more ineligible apartment abatement recipients do you think there are?
4:44:50
Is there a borough or a neighborhood that has higher than average rates?
Preston Niblack
4:44:55
I think Bay Ridge is really I don't I mean part of the we did our tax policy group did a review and they sort categorized people at sort of levels of likelihood.
4:45:13
So for example, somebody who is receiving a co op and condo abatement at an address in the city, but who is filing their tax return for the last two years from another address outside of the city, you know, those people overwhelmingly did not respond or actually fessed up and said, yeah, I don't actually live there.
4:45:31
So their abatements were revoked.
4:45:36
The sort of now we're kind of scraping the bottom of the barrel a little bit more and a little bit lower likelihood people, but we continue to do this exercise and review this regularly every year or every other year to ensure that we're sort of capturing on a regular ongoing basis the universe of people who may not be eligible for the abatement?
Justin Brannan
4:46:00
So we heard from some constituents that they only had like a week to reply to a removal.
Preston Niblack
4:46:08
Do you wanna answer that one?
4:46:10
Sure.
4:46:10
Okay.
Justin Brannan
4:46:12
What happens if a correction comes in after the deadline?
Jeffrey Shear
4:46:15
Yes.
4:46:16
So we give unit owners thirty days to respond, so not a week.
4:46:23
If you have specific complaints, please refer them to us so that we can review.
4:46:31
If mistakes were made by us in processing, we will fix them.
4:46:36
Including if they were made after the deadline.