NYC Property Taxes - Certificate of Capital Improvement - Exemption Form ST-124

Hi. I’m doing a small project at my house (less than $4,000) and the contractor advised that I could fill out this form to avoid taxes. I’m fine with the form itself. However, does anybody know if this can in any way be used to increase my property taxes? I did a massive amount of work a few years ago where I had to file with the DOB and my property taxes skyrocketed because of that work. I just want to make sure NYC isn’t going to get another opportunity to take advantage of me trying to improve my property. Thanks!

sharon121

in General Discussion 9 years and 2 months ago

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resident2 | 9 years and 2 months ago

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RE Tax re-assessments are triggered by building permits not sales tax forms. So if it is part of a permit job, do not sign blank forms, always check the cost estimate on permit applications before you sign them.

stevecym | 9 years and 2 months ago

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If the work is not subject to sales tax, the contractor must have a signed ST-124 from you in order to not collect the sales tax. the form is one in which he holds in case he is audited by the NYS Sales Tax Dept and your signature and his on that form are an affirmation that the job was in fact a capital improvement. The state (and city) generally does not see these forms; the state would only see them if they were to audit him. Really, the only way to avoid the sales tax is to sign the form (otherwise the contractor is obligated to collect it and submit it with his annual or quarterly sales tax return. He has no way out.