2009 Mar 11th

Hoboken’s W Hotel & Residence – Condo Owners Get a Sweet Property Tax Deal

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  The city is in the midst of a financial crisis making it unlikely that the ‘temporary’ property tax increase will be rescinded any time soon.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

Posted by Lori Turoff | Currently 17 Comments »

2008 Dec 9th

Hoboken Property Tax Increase – the Plot Thickens

By Lori Turoff –

[email protected]

Hoboken Tax Revolt  

I just got an email from a neighbor asking Hoboken residents to join a Hoboken Tax Revolt.  They’ve put together a website:  www.HobokenRevolt.com

Here is what the email says:

We’ve had enough.
A 47% increase in our taxes is unacceptable.
It’s time the taxpayers of Hoboken were heard.
Stand up and become a part of a better Hoboken.
One with accountability, transparency and responsibility.
The larger the group, the louder the voice.
Join us in protest on December 17 at City Hall.
6:00 pm ~ Protest Rally
6:30 pm ~ Press Conference
7:00 pm ~ City Council Meeting
Let’s cut spending. Not ribbons.
To learn more, or become part of Hoboken Revolt log onto
The MISSION of HOBOKEN REVOLT, a community-based group,
is to ensure fiscal responsibility and accountability in Hoboken government
and the fair allocation of property taxes among all Hoboken property owners.
1) HR seeks immediate measures to reduce out-of-control municipal spending
which has resulted in the mushrooming of the city budget from $53 million to
$120 million over the course of seven years and imposed an unacceptable burden on the taxpayers.
2) HR advocates deep cuts in expenditures for all non-essential services,
based on an expedited, comprehensive and open review of the current budget
proposal and of the City’s existing legal obligations.
3) HR advocates a zero-based, austerity FY ’10 budget with transparency
and accountability in the budgeting process.
4) HR expects the Mayor and each member of the City Council to make
cooperation in achieving the aforementioned cuts in spending their top
priority. The Mayor and each member of the Council must be accountable
to the public for their individual roles in the process.
5) HR seeks a moratorium on any new PILOTs, abatements or other actions
which allow property owners to pay less than their fair share of municipal taxes.
HR also calls for renegotiation of any existing PILOTs and abatements, where permitted by law.
6) HR asks the State Fiscal Monitor to address the property tax consequences
if the city-owned hospital fails, since the city has guaranteed over $40 million in hospital bonds.
HR endorses prompt city action to revert the hospital from municipal ownership to a not-for-profit entity.
7) HR supports taxpayer activism in the form of collective advocacy and protest,
and large-scale individual challenges to property valuation in furtherance of HR’s goals.
8) HR seeks to ensure that the City of Hoboken immediately meet its legal obligation
to undertake a comprehensive property revaluation conducted by a third party independent
group selected by the State. The revaluation process and schedule should be set forth in writing,
open for public comment, and be transparent at all times through its implementation.
9) HR expects the Mayor and each member of the City Council to publicly state their
respective positions on the proposed revaluation and immediately appropriate the
necessary funding for its implementation.
10) HR calls for an independent review by the State of the City’s failure
to implement a timely Hoboken revaluation.
©2008 Hoboken Revolt. Hoboken Tax Reform Coalition is a community based group  with absolutely no affiliations to any political organization or individual.
These are their words, not mine.  Worth some thought, especially if you are or about to become a property owner in Hoboken, no?

Posted by Lori Turoff | Currently 2 Comments »

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