Tax abatement ends in 4 years

You can look up what the unabated amount would be today on the New York City department of finance website. You can only guesstimate what they will be 5 years from now, assuming taxes will continue to increase.

Keith Burkhardt
TBG

https://streeteasy.com/blog/nyc-tax-abatements-expiring/

There is no real uncertainty. An abatement slated to end always ends.
Its been some time since Ive been in the market but manhattan was limited to 10 year abatements.
I think it has changed since then and there are 15 and 20 year programs now, certainly always so in LIC.

If I recall when I looked up some apartment tax bills at the NYC tax website,

https://a836-pts-access.nyc.gov/care/forms/htmlframe.aspx?mode=content/home.htm

the tax bill would show what the total tax bill is, and then how much is abated. The total however is how much it would be TODAY if there was no abatement. Of course 4 years from now aside from the abated portion, the total tax will likely be higher at an average of 5% a year. Thats just a rounding rough guestimate.

Another way to look at it is if you know what the total term of the abatement is, use the current tax amount to derive what it should be.

Simple example.
Apartment has a 10 year abatement.
the schedule is as follows
I beleive every 2 years you would lose 20% of the abatement to get to 0% at the end of the term.

So year 1 using round numbers.
Taxes are $10,000 a year

Year 1 you pay 0%
Year 2 you pay 0%
now it bumps up 20% of the total bill, however the total bill has been newly assessed each year as well. Lets use my 5% increases number.
Taxes are now assessed $11,025 a year (2 years at 5% increase each year of the $10,000)
Year 3 you pay 20% of $11,025 ....
Year 4 you pay 20% of $11,576.25
Year 5 you go up to pay 40% of now $12,155.06
Year 6 you pay 40% of $12,762.81
Year 7 goes up to 60%
Year 8 you pay 60%
Year 9 goes up to 80%
Year 10 you pay 80%
Year 11 you pay full rate.
(And its probably even uglier than that as during the early years, nobody is using tax certioraris to keep the increases to a minimum because its not on their radar in the early years)

The 15 year schedule looks like this
Years 1 thru 11 is 0% taxes to pay
Year 12 is 20%
Year 13 is 40%
Year 14 is 60%
Year 15 is 80%
Year 16 is 100%
If this is what your looking at, 4 to 5 year expiration as you noted means you are now in year 10 or 11 and ALL of the tax pain is to come.

20 year schedule is similar to the 10 year bump ups (every 2 years)
but starting in year 11. First 10 years are 0%

Hope this helps. If I got any of this wrong Im sure someone will chime in.