An article of interest to me was one comparing the tax rates of a comparable property from Maxwell Place which is thankfully not abated vs. a similar one bedroom condo in the new W Hotel residences. The article stated that the W Hotel residences are under a 99 year tax abatement program with the Port Authority which in and of itself is not an issue. When you see the rates for the two comparable properties you see the tax discrepency and the unfairness in taxes from one unit to another.
125 Maxwell Lane (Not on PILOT)
Unit 518 - 813 sq. ft. 1 bed, 1 bath. Asking $579,000 - Taxes are based on sale price at 1.3% of purchase price = $7,527. No limit on tax increases.
225 River St. (W Residences PILOT)
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.
This means that a property at the W worth almost twice as much pays one half the taxes of a Maxwell Place condo owner. Unbelievably unfair. I know life isn't supposed to be fair but still. Not only is this unfair but it gets worse over time.
To see the full article go here:
http://hobokenrealestatenews.com/2009/03/11/hobokens-w-hotel-residence-condo-owners-get-a-sweet-property-tax-deal/
As a courtesy I also added this blog to my Hoboken Blog list on the right side of the web site.
My Comment: Now, not all PILOTS necessarily have to be bad for normal taxpayers. It just seems that every PILOT in Hoboken that I find about is unfair to me and the many other taxpayers who are not under abatements.
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