I came across the following fascinating article in the Real Estate section of last Sunday’sNew York Times:
We all knew that Bronx-based developers were making millions selling 421-a tax certificates to luxury developers in Manhattan… but it’s rare to hear the super rich openly whining and complaining about the fact that they will eventually pay property taxes on their multi-million dollar apartments. “It’s utterly ridiculous,” says the owner of a $1.6 million apartment on West 42nd (as well as houses in LA and Palm Springs) of the $1600 a month in property tax he’ll be paying by 2018.
Really? $20,000 in tax on a $1.6 million apartment is “ridiculous”? The super rich have stopped even pretending that they have a mandate to help fund the services that they, in the most coddled borough in the world, benefit from every day. (Take a look at what’s happened to their property values since 2007.)
And while we’re glad they overhauled the 421-a, and staunched the bloodletting of money to developers and the super rich, we’re pretty sure the rich will find other ways to keep getting richer and richer. And the working people of the city will continue to bear the brunt of their disaster, and slip farther and farther behind.
By Kristin Hart, President of FIPNA