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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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Uhhh,
Maybe you want to re-read my post T-bird. I am telling wibbit that it is unlikely he will pay less if he disavows his abatement BECAUSE abatements mean lower taxes, or else developers wouldn't be begging for them. I'm not sure what you think I said?
Posted on: 2009/7/3 14:53
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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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Who is saying developers are against abatements? I've never heard that. I can't imagine the circumstances in which a developer would be opposed to one.
Posted on: 2009/7/2 14:33
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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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From what I understand, the catch in asking for an "adjustment" to the PILOT is that the PILOT is canceled. While that may be advantageous over the near term, you are trading away many years of certainty in the process.
Once the revaluation occurs - imminently - you will be tossed onto the seas of rising property tax rates, since they won't fiddle with valuations for another couple decades, if history is any indicator. I'd think hard about just how much you can get the valuation lowered (not sure if the numbers you were using were hypothetical) and what your likely hold period is on the property. If you are likely to sell in the next three to five years, it probably makes sense - although you'll be selling a newer apartment that lacks the PILOT that all the other sellers will possess.
Posted on: 2009/7/2 14:31
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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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wibbit,
Let us know what happens if you remove the abatement. My bet is you will pay a great deal more in spite of the boilerplate that abated deals are costing developers. If abatements weren't lucrative for developers they wouldn't all be lining up with hands out and BEGGING for them. They are realists not altruists.
Posted on: 2009/7/2 14:17
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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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yeah it's a 20+ year, not 5 year. i wonder if it's better just to petition to remove the abatement altogether, i will be at the mercy of the city each year, if they decide to double the tax like hoboken did, then it be bad
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Posted on: 2009/7/1 14:14
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Re: anyone petitioned for tax abatement change in the past?
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Newbie
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It's not that easy(maybe not even possible) to challenge this. You need to read the PILOT agreement. In my opinion, you are not able to petition for a reduction.
Posted on: 2009/7/1 13:30
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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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I have a hunch it might not be so easy as providing the new purchase price. For example, if Granny sells the apartment to favorite granddaughter for $1, I cannot imagine the city settling for 1.7 cents a year "in lieu" of taxes.
![]() Same applies if granddaugter paid $200,000 or $300,000.
Posted on: 2009/7/1 12:59
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Re: anyone petitioned for tax abatement change in the past?
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Just can't stay away
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What you described was a long term PILOT (1.67% of purchase price) not a real 5-year abatement.
In that case the tax adjustment should be a standard requirement of the agreement.
Posted on: 2009/7/1 9:21
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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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yeah i am definitely going to hire an attorney to handle this, Just wasnt sure if it's worth the effort or doable.
JCLAW are you sure the abatement can be adjusted based on the most recent purchase price? I thought (probably wrong) it's a building by building type deal. Like in newport james monroe the agent told me dont look at the abatement #s because they are automatically reset to whatever the new purchase price is. Yet in other buildings, i was told the abatement will still remain the same to whatever the original purchase price was, and you cannot change it. The only thing you can do is cancel the abatement all together. Just seems a lot of confusion, thanks for the info i will go there next time instead of over the phone.
Posted on: 2009/6/30 23:56
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Re: anyone petitioned for tax abatement change in the past?
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Home away from home
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Don't bother talking to anyone but the top people at the tax assessors office either, most of them don't know anything, and by anything I mean they might as well be working at McDonalds or maybe greeting people at Wall-Mart. It's is intensely frustrating to get anything done there. Another option, if the top people there give you a tough time, is to get your council person involved, hopefully for you that's Fulop.
The guy with the long braid in his hair is one of the smart ones over there try to talk to him, sorry don't know his name but the servants over there call him chief.
Posted on: 2009/6/30 22:58
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Re: anyone petitioned for tax abatement change in the past?
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Just can't stay away
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wibbit
What you are suggesting is almost automatically granted. But they will dodge the question until you force it on them. You need to get in front of the tax assessor (Scrochi) and show him your numbers. You need to threaten cancellation of your 'abatement' and that you will be happy to go on regular taxes based on your purchase price, which is cheaper than the 'abatement' plus the city loses 50% of the take. You need to be relentless OR you need to hire a local "certiorari" lawyer. There are lots of local firms who will do this for you if you do not have time to do it yourself.
Posted on: 2009/6/30 21:55
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anyone petitioned for tax abatement change in the past?
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Home away from home
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original owner bought at 500k paying 1.67% abatement at $8350 a year.
second owner bought at 400k but still paying $8350 a year. In this situation, has anyone tried to petition to adjust abatement to the new purchase price of 400k * 1.67% = ~$6600 a year. Is it doable? i called the tax assessor office but they dont seem to be very clear, just asked me to try. Just wondering if anyone has gone through this process. I know you can do it with regular property tax if it's about ~15+% difference, but is it possible with tax abatement? thanks
Posted on: 2009/6/30 20:29
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