The United Federation of Academics has cashed in on thousands and thousands of {dollars} in sweetheart tax abatements on properties it owns in New York Metropolis, all whereas the union advocates for increased property taxes for everyone else.
The highly effective union has secured greater than $17 million in financial savings from property-tax abatements and different credit on its two Monetary District buildings, an evaluation of public information by The Put up exhibits.
These have included a number of Industrial & Business Incentive Program breaks, lease abatements from the town, industrial growth tax credit and extra.
In 2002 the UFT offered off its longtime headquarters on Park Avenue South and bought a 340,000-square-foot constructing at 50 Broadway.
It moreover “internet leased” a 400,000-square-foot house at 52 Broadway — which left them on the hook for the location’s property taxes.
The UFT has secured no fewer than 129 separate tax breaks and refunds from the town Division of Finance since 2009.
In some circumstances the financial savings had been as small as $1,252.92 for a industrial growth credit score in February 2020 and as giant as a jumbo ICIP $689,568 deduction in August 2009.
Town Division of Finance’s publicly obtainable on-line information solely return to 2009, suggesting the sum of all tax breaks is considerably increased.
The years of sweetheart therapy fly within the face of UFT honchos who’ve lengthy argued that property taxes within the 5 boroughs must be increased — in order that academics could be paid extra.
“As a substitute of asking the wealthiest to assist fund the general public providers we deserve, the state funds has been stored on a hunger weight loss program for the reason that final recession as a result of self-imposed 2% spending cap,” UFT boss Michael Mulgrew mentioned in March 2020, calling on legislators to raise a 2% cap on annual property tax will increase, which had been carried out in 2012.
In 2014 the union referred to as for the town to boost “absurdly low actual property taxes” on out-of-state landlords to safe extra training funding.
But the UFT filed no less than 33 “tax certiorari” lawsuits towards New York Metropolis since 2003 to have its property tax invoice decreased.
The union has argued the town assessments had been “unjust, inaccurate, unlawful, illegal, extreme and unequal.”
The need for tax reduction additionally extends to their most senior officers’ personal properties. Randi Weingarten, a former UFT boss who now serves as president of the American Federation of Academics, has filed no less than two lawsuits — in 2014 and 2021 — contesting property taxes on a $1.55 million East Hampton dwelling she co-owns along with her sister, in keeping with East Hampton property evaluation rolls. Each circumstances had been settled.
Mockingly, whereas getting mega tax breaks from the town, the town additionally pays the union to lease house in its buildings.
The UFT has reaped greater than $6.2 million in lease and different funds from metropolis places of work since 2010, in keeping with knowledge from the town comptroller’s workplace.
The Division of Schooling was the union’s largest metropolis tenant.
The UFT controls each buildings below nonprofit holding corporations — 50 Broadway Realty Corp. and 52 Broadway Realty Corp.
Mulgrew is listed because the principal officer of each, in keeping with their most up-to-date 990 tax types. As 501(c)(2) organizations, each buildings are additionally exempt from paying federal earnings taxes.
“Town tax code supplies provisions for tax reduction which apply to house owners of actual property. As a part of preserving union sources, the UFT has participated in these packages,” a UFT spokesman instructed The Put up.
Critics mentioned the lover tax offers had been a blatant double customary.
“Ask any trainer, firefighter, or police officer on Staten Island whether or not they can afford a property tax hike. It’s unconscionable that some folks suppose hard-working taxpayers are ATMs with limitless funds when the reality is that if properties like those owned by UFT paid their justifiable share, the burden wouldn’t be falling on the center class,” Rep. Nicole Malliotakis instructed The Put up.
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