A year after Comptroller Scott Stringer identified 1,509 properties that were improperly collecting property tax breaks, the city’s Finance Department is still letting more than half of them keep their benefits, the comptroller found in a new audit released Wednesday.
In its most recent review of the state’s STAR and ESTAR property tax exemption programs — both of which are administered by the Finance Department — Stringer found that 815 ineligible properties cited in his last audit were still pulling in $713,454 in “improper tax breaks.”
STAR stands for School Tax Relief and ESTAR refers to Enhanced School Tax Relief.
Homeowners are eligible for both of the tax breaks on primary residences.
But corporations and shell companies — like the ones Stringer singled out, first in 2015 and now again this — are not.
“One audit should have been enough for the Department of Finance to end the practice of giving away tax exemptions to ineligible corporations,” Stringer said. “The city must redouble its efforts to ensure these tax breaks only go to those who deserve them.”
Last year, the Finance Department agreed to the initial audit’s recommendations, saying at the time it was already “undertaking the steps recommended to ensure renewals are being completed and case files are being maintained.”
The agency also agreed with this year’s findings.
“DOF is in the process of completing its outstanding review of properties identified as owned by corporate entities,” the agency said in a response included with Stringer’s new report. “Immediately following the review, DOF will notice the affected corporations or LLCs of their ineligibility.”