FLIP TAXES
Legal Line Question of the Week Flip Taxes I am representing the owner of a co-op apartment that is in the process of selling her apartment. The co-op board has just implemented a flip tax (the "Flip Tax") and the seller is concerned that the Flip Tax is going to decrease the value of her apartment. What are the steps that a co-op board must follow in order to implement a Flip Tax? Will the seller have to pay the Flip Tax when she sells her apartment? A Flip Tax is a fee that a co-op charges (usually to the seller) upon the sale of the apartment. The general purpose of the Flip Tax is to increase revenue for the co-op without raising monthly maintenance fees. The origin of the Flip Tax dates back to the early days of co-op conversions when investors were buying co-ops (with no intention of living in the co-op) and then flipping" the apartment for a profit. The Flip Tax was a way for the co-op to get a shar