421A Abatement

Although brokers will tell you that the unabated taxes number 10 years out will reflect market tax rates at that time so that you wn't be disadvantaged re other properties I have come to the conclusion that this is BS. The taxes on all the new contrsuctyions are much higher than exisitng developments. In the future this may be corrected (my wife is a tax lawyer and she says there is some movement afoot to fix this imbalance) but in the interim new developments have mich higher taxes. In the short term this is offset to a degree by the abatement (which phasesout gradually by the way so that your taxes will begin increasing in year 2). However, you should expect to pay more motnhly if you stay and have the valuae of your property adversely affected when you go to sell because the monthly carryng costs will be much higher a few years down the line.

I agree with the post above. It is somewhat of a gamble. In addition, government moves slowly to correct any imbalance. However, I gotta think that if the imbalance gets trully out of whack (for example, some mediocre new development in Hell's Kitchen, Murray Hill, BPC or where ever being taxed at a rate 3 or 4 times what is being taxed at existing places in, say, Tribeca, UES or UWS), then I would have to think there would be a fair amount of political pressure towards correcting that.

Is there any way to find out if a building really has a 421G tax abatement and what the rates are?