New York City collected $19 billion in property taxes for the year ending June 30, 2013. But it lost out on $4.98 billion more, thanks to exemptions granted to schools, houses of worships, hospitals, non-profit agencies — and luxury housing developments and office towers.
Here are top 10 property tax exemptions in New York this year, excluding property used for charitable purposes. Without exemptions, these buildings alone would pay $114.7 million annually to the city.
Source: New York City Department of Finance
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1. Chrysler Building
Shutterstock Annual taxes unpaid: $18,726,870
The land under the famed tower is owned by Cooper Union and the downtown college’s 1859 charter calls for a tax break as long as the school uses its property and income for “the instruction and improvement of inhabitants of the United States in practical science and art.” Tishman Speyer Properties, which owns the Chrysler Building itself, makes the equivalent of the yearly tax payment into the college’s coffers.
Cooper Union, citing financial constraints, made the controversial decision earlier this year to end its tuition-free policy and will begin charging tuition in 2014.
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2. Madison Square Garden
Reuters Annual taxes unpaid: $16,579,791
State legislation dating to 1982, approved after the Garden’s owners threatened to move the Knicks and Rangers out of town, gives MSG a tax break in perpetuity. Mayor-elect Bill de Blasio says he opposes the break, but efforts to repeal the exemption, including legislation introduced in Albany earlier this year, have gone nowhere.
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3. Luxury apartments, 505 W. 37th St.
Astrid Stawiarz Annual taxes unpaid: $11,647,755
Developers of this luxury apartment building secured a 421-a tax exemption by designating 20 percent of the units — 166 of 835 apartments — as affordable housing. A market-rate one-bedroom, one-bath unit on the 21st floor rents for $3,495. The benefit will last 20 years, expiring in 2031.
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4. JPMorgan Chase headquarters, 270 Park Ave.
Reuters Annual taxes unpaid: $10,964,850
This 52-story tower at 270 Park Ave. was built in 1961 as the headquarters for Union Carbide and later the location of Manufacturers Hanover Bank. The building is now the world headquarters for JPMorgan Chase. The exemption was granted under a now-defunct program known as ICIP, designed to encourage economic development for construction — or in this case, an upgrade or renovation — of commercial or industrial property. It is in the fifth year of a 20-year exemption.
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5. Luxury apartments, 8 Spruce St.
Lois Weiss Annual taxes unpaid: $10,846,159
This new tower in lower Manhattan was designed by famed architect Frank Gehry. The project was financed with Liberty Bonds, which were issued after 9/11 to encourage development in lower Manhattan, and qualified for the tax exemption. There was no requirement to provide affordable housing, and a studio apartment in the tower is available for $3,070. The 20-year exemption expires in 2031.
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6. Emerald Green Apartments, 320 W. 38th St.
Astrid Stawiarz Annual taxes unpaid: $9,617,068
Twenty percent of the building’s 569 luxury rental apartments were designated as affordable housing in order to secure a 421-a tax break. The benefit lasts 20 years, expiring in 2031.
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7. Tribeca apartment complex, 101 Warren St./89 Murray St.
Chad Rachman Annual taxes unpaid: $9,492,628
The Wall Streeters, media execs and lawyers who call this luxury condo building — complete with elevated pine forest — home will enjoy a tax break for 10 years. When it was built seven years ago, a tax exemption was granted to encourage development in Tribeca. Developer Edward J. Minskoff Equities also got a 20-year 421-a exemption for the adjoining rental building at 89 Murray St., where 77 of the 163 apartments are designated as affordable.
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8. Mercedes House Apartments, 550 W. 54th St.
Christian Johnston Annual taxes unpaid: $9,367,837
The developers secured a 421-a tax exemption by offering 20 percent of the units — 140 out of 700 apartments — as affordable. A Mercedes-Benz dealership — which also gets a tax break — is located on the ground floor of the apartment house, which tempts people to “Upgrade your rental to a Mercedes.” The building boasts indoor and outdoor swimming pools, an indoor basketball court and outdoor putting green. Market-rate one-bedrooms start a $3,450 a month and two-bedrooms start at $5,300. The break lasts 20 years until 2033.
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9. Shopping mall, 61-01 Junction Blvd.
Annual taxes unpaid: $9,367,837
The developers secured a 421-a tax exemption by offering 20 percent of the units — 140 out of 700 apartments — as affordable. A Mercedes-Benz dealership — which also gets a tax break — is located on the ground floor of the apartment house, which tempts people to “Upgrade your rental to a Mercedes.” The building boasts indoor and outdoor swimming pools, an indoor basketball court and outdoor putting green. Market-rate one-bedrooms start a $3,450 a month and two-bedrooms start at $5,300. The break lasts 20 years until 2033.
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10. Verizon headquarters, 1095 Avenue of the Americas
orenzo Ciniglio Annual taxes unpaid: $8,469,281
The office building at the corner of 42nd Street is the world headquarters for Verizon. A renovation project qualified the property for a 12-year ICIP exemption, which expires in 2020.