Buy an (Almost) Million Dollar Condo – Pay Under $4,000 a Year Hoboken Property Tax
Hoboken residents are up in arms about rising property taxes. Several groups have been formed to fight a recent 47% property tax increase. The city is in the midst of a financial crisis making it unlikely that the ‘temporary’ property tax increase will be rescinded any time soon. Yet today I learned that the purchasers of multi-million dollar condos at the Hoboken W Hotel & Residences are the beneficiaries of a sweet deal, indeed. The W property enjoys a Port Authority PILOT (payment in lieu of taxes) for 99 years. That’s correct – 99 years. As a result, purchasers of these condo units atop the W Hotel will be paying incredibly disproportionately low property taxes on their Hoboken property.
Apples to Apples
Just to compare apples to apples, lets look at a unit at Maxwell Place and a similar unit at the Hoboken W Hotel.
1125 Maxwell Lane
Unit 518 – 813 sq. ft. 1 bed, 1 bath. Asking $579,000 – taxes based on sale price at 1.3% of purchase price = $7,527. No limit on tax increases.
225 River St. (W Residences)
Unit 1806 – 800 sq. ft. 1 bed, 1 bath. Asking $945,000 – taxes $3,296 and will gradually increase to $7,900 in year 100
As For The Rest Of Us Poor Hoboken Taxpayers
I just received the following very timely email from the Lower Hoboken Taxes group:
NOTE: Due to time/space considerations, the complete newsletter is available online and not in this email. Click here for full newsletter: http://www.lowerhobokentaxes.com/forum/topics/lht-newsletter-march-11th-2009
Breaking News: Additional $2.1 million To Be Raised in Taxes This Year: Special Budget Meeting Tonight 6:00 pm
2009 Budget is being revised upwards another $5.1 mm from $121 mm to $126 mm resulting in an additional $2.1 mm to be raised via taxes (totaling $64.2 mm from $34 mm in 2008!) Come to the budget meeting tonight at 6:00 to learn more and encourage cuts!
Latest increase does not included the $4.2 mm charge for the illegal early retirement program. It is anticipated we will have to pay this in July at the beginning of the next fiscal year.
Check out the letter from Judy Tripodi regarding the amended budget (via Hoboken411). http://hoboken411.com/wp-content/uploads/2009/03/judy-tripodi-memo-…
Force Change Rally was a Success!
Thank you to all those who came out to the rally and City Council meeting last week! Press coverage and video at: www.lowerhobokentaxes.com or NBC4 New York: http://www.nbcnewyork.com/news/local/Town_Digs_into_Citizens__Pocke…
(link in email not working)
What Happened Last Week:
Last week’s Council Meeting was standing room only with the following key issues being discussed:
– Church Towers: The council voted 6-2 to approve an extension of the Church Towers Pilot that included requirements by the owners to obtain a HUD program to keep the housing affordable. Zimmer and Cunningham tried to take the issue to subcommittee but were overruled. They both voted no on the extension stating that they were not sure the resolution could bind the owners to a HUD program, therefore granting the owner a tax break while putting the tenants potentially at risk for the owner to raise rents or take the building condo. Full story available at: http://www.lowerhobokentaxes.com/forum/topics/lht-newsletter-march-11th-2009
Visit Lower Hoboken Taxes at: http://www.lowerhobokentaxes.com