Re: New Tax Rate is Insane!
Posted by bodhipooh on 2018/3/12 12:41:41
This is a fascinating case! A tax abated property paying 55% more than if it had received no tax abatement and paid normal property taxes.
The city will collect thousands less when the tax abatement is dropped AND it will have to share those revenues with JCBOE and the County.
Not at all surprising. In fact, for a while I have been speculating this would become a reality for many homeowners who have purchased abated properties in recent times: their abated taxes are higher than traditional taxes now that the reval came out with such a relatively low property tax rate.
All those Canco Loft units were "abated" at ~1.67%, so they could now go off their abatement contracts and save a bit of money, and the city will have to come up with additional income streams to make up the large shortfall. The same is likely true of many, many other property owners. The real question is: how many homeowners are savvy enough to look at their abatement contracts and do the math to determine which is better for them: abatement or regular taxes. If enough people decide to go off abatement, the city will see a huge drop in income and that promised reval for next year may actually yield a higher rate. That definitely would spell trouble for the mayor, and those DTJC homeowners wishing/hoping for relief after a second reval.
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