NYC Council Approves Bill to Reduce Interest Rate for Late Payments of Certain Property Tax Payments Due July 1, 2020
6.26.20 | Client Alert – COVID-19 Update
On June 25, 2020, the New York City (NYC) Council approved a bill to reduce the interest rate for late payments of certain NYC real estate taxes due on July 1, 2020. The Mayor is expected to sign the bill, which would subject certain properties to a lower interest rate for late payment if paid by October 15, 2020. If signed by the Mayor, the rate would be reduced from 18% to 7.5%.
Two categories of property qualify.
- The property must be class 4 real property (commercial and industrial properties) with an assessed value of more than $250,000 and less than $750,000; and
- Adversely affected by COVID-19, meaning the income of the property declined between March 7, 2020 and June 30, 2020 by at least 50 percent as compared to the same period in the previous calendar year.
- The property has an assessed value over $250,000;
- At least 50% of the property is used for residential rental dwellings;
- The property contains no more than 30 rental dwellings of which at least 50% are rent regulated; and
- Adversely affected by COVID-19, meaning the income of the property owner declined between March 7, 2020 and June 30, 2020 by at least 25 percent as compared to the same period in the previous calendar year.
Berdon LLP New York Accountants