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I've read though the threads about tax abatements and how you should factor that in when buying a place. I was checking out the atelier on 42nd street.
Based on one of the posts I found here, I used this link
http://www.brickunderground.com/blog/2011/03/how_to_look_behind_a_tax_abatement
to figure out how much it'll cost in taxes when the abatement is up. It seems awfully high, can one of you gurus confirm that it is indeed that pricey?
Here's a Quarterly tax statement of a random unit i pulled from the city records.
http://nycprop.nyc.gov/nycproperty/StatementSearch?bbl=1010901174&stmtDate=20120608&stmtType=SOA
it says:
Tax before exemptions and abatements $76,235 X 13.4330% = $10,241*
New Mult Dwellings - 421a $-44,480 $-5,975*
Tax before abatements $31,755 $4,266*
Annual property tax $4,266*
Does that mean that once the abatement is up, then the tax goes to 10,241, or 10,241x4 = almost $40k a year??
Thank you.
It seems as though it would go up to $31,755. This is a building where I have noticed the listings don't seem to consistently or accurately reflect tax increases. Just look at the rental and sales history. I don't see how people could get mortgages in this building.
If there was no abatement, then it'd be $10,241 annually, as of this year. It's apparently four years into its 10-year abatement.
By 2018, though, that $10,421 will be some higher number. The assessed value could go up or the rate could go up. Some of those increases are themselves phased in over years, so no way to be precise.
Back in 2008, that condo was still paying the mini-tax of $250 per year, and the city was projecting an unabated annual amount of $9,100.
actually, that makes total sense. on a ten-year tax abatement you figure roughly fourish-fivish times the first jump up in taxes, i believe, assuming no changes in tax rates/assessments by the city.
how big is the unit? that's not horrible, unless it's a studio, but i am pretty sure that the few accurate listings I saw did not provide any reassurance.
Thanks NWT and aboutready.
I was actually pretty confused about that because the statement was Quarterly. I was considering buying in there since I live nearby at one of the TF cornerstone buildings on 37th and actually do like the hood.
Why would the statement be quarterly and list that $10,241 fee? I saw some of the prior histories and it was listed as an annual tax.
One of the units I was looking at is about 666 sq ft, and a 1 br unit.
NWT is correct - the unabated tax is $10k. Given the changing nature of assessed values and tax rates (the only factors that matter in the actual calculation of RE taxes here), it will quite likely be higher in 10 years, but that's a good number to ballpark around, NOT $32k or $40k.