Superblock: A reader tried to come up with a Full ‘hypothetical’ Tax Schedule [Tax week continues…..]

The numbers on the attached spreadsheet are hypothetical, so please don’t use it as fact. It was made my a reader trying to figure out what a ‘developed superblock’ share would be with no tax abatement.

“Tried to figure out the 25 year Tax schedule at Full Taxes.  I took the same 1.66% increase iStar uses, but we all know that taxes in Long Beach go up more than that usually…

If these numbers are even close to accurate the City of Long Beach is getting a very bad deal, so are the taxpayers of Long Beach.  If these numbers are even half correct, if this development paid their “fair share” it would be a game changer for Long Beach and would pump a considerable amount of tax money back into the city coffers and into the potholes and other city infrastructure issues…  -LOVE MY CITY
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9 thoughts on “Superblock: A reader tried to come up with a Full ‘hypothetical’ Tax Schedule [Tax week continues…..]”

  1. The first year sounds right. After that, the taxes are based on income and expense once the building is tenanted.

  2. So if I purchase a 3 story house, how does the taxman know what my income and expenses are and how does that get factored in to my property tax?

  3. @CO – maybe I’m wrong, but I think he means income of the corporation (which would be pretty easy to determine).

  4. Beginning at page 105 of the pilot application (pdf pages) there is an economic impact analysis that was submitted in January 2014 with the ZBA variance request. It says at page 4 (pdf 108) and 22 (pdf 126) that the project will result in $5.6 million in real property taxes. $1.4 million to the City and $4.2 million to the school district. Trying to get the information in each article posted.

  5. @ Captain O…I guess you mean three families. I’m not familiar with Nassau requirements for that small a house. It may be comparable sales or income less expenses, with the bottom line determining the taxes.
    If the building has a negative income, guaranteed they will go by comparable sales.

    @Anthony. You are correct.

  6. Assume 525 units, $3,500 p/month, 12 months a year…at full capacity that’s $22,050,000.

    Taxes are about 25% in year 1…

    That number becomes smaller; when you consider that rents go up about 2.3% a year on average and if taxes go up 1.6% a year… Then the tax percentage is smaller over a longer period of time.

    But, it’s not taking into consideration the amount of money they will charge for parking… For rent in the commercial portion, other fees.

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