Garage Benefits Tax Exemptions and Money-Saving Strategies

If someone were to tell you that as a New York co-op or condominium owner you may be throwing away up to $1,000 a year on unnecessary taxes, you’d probably be pretty indignant, right? No matter who you are or what you do, a thousand bucks is nothing to sneeze at–and you could certainly think of better things to spend it on than taxes.

Thousands of New York shareholders and condo owners are doing just that, however–shelling out unnecessarily for the privilege of parking their cars in garage spaces owned and leased by their own buildings. Many–if not most–owner-occupants are unaware that thanks to a piece of state legislation passed in February 2001, they are exempt from paying parking-related taxes in garages leased by their cooperatives and homeowners associations.

Hey, Mister Taxman

According to Robert Grant, director of management at Manhattan’s Midboro Management, Inc., if your building leases its parking facility to a commercial operator as a source of revenue and you routinely park your vehicle there, you’ve been paying a four percent New York State tax, plus all local taxes, plus a one-quarter percent Metropolitan Commuter Transportation District tax, plus a six percent New York City Municipal Assistance Corporation parking tax. If you only occasionally park your car in your building’s garage, you’ve been paying an additional eight percent in Manhattan parking tax as well–unless you’ve filed (and re-filed every other year) with the City’s Department of Finance for a Manhattan resident parking tax exemption certificate.

According to Michael Horowitz of Horowitz & Zim Law Group in Manhattan, "This exemption [is] limited to individual residents where parking services are rendered on a monthly basis for a year or more. Individual residents are defined as maintaining their primary residence in the county where the vehicle is garaged and registered at the address of the primary residence."


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