The Tax Man Has a Hole In His Pocket

The Assessment Review Board (“ARB”) has recently ruled that superintendent units, as Common Amenities Service Units (“CAU(s)”) should be assessed for municipal taxation at $9 each. The same logic used by the ARB may be applied in relation to certain parking units, guest suite units, mechanical units, gate house units, recreational units and/or other service units owned by a condominium corporation providing amenities or services to unit owners.  This means that condominium corporations would not be subject to paying municipal taxes on said CAU(s). The key consideration for the ARB was that such units are not marketable; accordingly, nominal assessed values should be applied.

This most recent precedent from the ARB is important because should a condominium corporation make a Request for Reconsideration, it could be subject to great savings as a result. It is possible that the Municipal Property Assessment Corporation (“MPAC”) may appeal the ARB’s decision within the next thirty (30) days.

Elia Associates recommends that condominium corporations consider immediate filing of a 2013 Request for Reconsideration with MPAC for any CAU(s) before the April 1, 2013 deadline in order to take advantage of the ARB’s recent ruling.

Condominium corporations who have already paid any taxes to the municipality for CAU(s) are also subject to having their CAU(s) reassessed and could benefit from a reduction in municipal taxes paid by way of a tax credit for future years. If a 2013 property assessment notice has been issued by MCAP for a CAU, Elia Associates encourages condominium corporations to participate in our 2013 Request for Reconsideration Program.

Elia Associates is offering a low-price fixed fee for the 2013 Request for Reconsideration Program. If you choose to enroll in our 2013 Request for Reconsideration program, please contact my law clerk, Linda Schweigler, at lschweigler@elia.org for enrolment documentation. Such documents must be accurately completed…and quickly!

Due to the April 1, 2013 timeline fast approaching, all enrolment documents must be completed accurately and received by our office no later than March 27, 2013 (March 28, 2013 is the last “business” day of the month). In the event that we receive enrolment documents after March 27, 2013, we may not be able to assist as the deadline may have either passed or we will be unable to process your documents in time.     

All of the information contained in this article is of a general nature for informational purposes only, and is not intended to represent the definitive opinion of the firm of Elia Associates on any particular matter. Although every effort is made to ensure that the information contained in this newsletter is accurate and up-to-date, the reader should not act upon it without obtaining appropriate professional advice and assistance.

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