thebruns t1_je11gmu wrote on March 28, 2023 at 5:17 PM

Reply to comment by xTheShrike in Tenants Fight Back As Rents Soar In Jersey City And Hoboken by mad_dog_94

Dont most of the large buildings have 30 year tax exemptions?

BillyCrocker72 t1_je1advg wrote on March 28, 2023 at 6:12 PM

But even if large buildings have exemptions, landlords who do not would still affect the market by passing their property taxes increases to rent. Collectively owing a property in Jersey City became more expensive regardless if some had or had not exemptions.

I live in my property in JC (32% tax increase btw), but if I was renting it out, I would surely pass these costs to my tenant. The aggregate effect of people doing the same would without a question put pressure on rent, even of tax abated properties

Scoochiez t1_je1b2mr wrote on March 28, 2023 at 6:17 PM

You are making too much sense

Miringanes t1_je14rqp wrote on March 28, 2023 at 5:37 PM

Not in the way you’re thinking. They make payments, mostly to the municipality.

thebruns t1_je1e0l5 wrote on March 28, 2023 at 6:35 PM

Did those payments go up 25%?

Miringanes t1_je2lkkd wrote on March 28, 2023 at 11:18 PM

Not sure, they aren’t necessarily fixed, and sometimes they are even more than what the tax rate is but a developer might lock into them because it’s a known rather than a variable like a tax would be.

So in theory, yes, they could’ve went up, but also they could’ve been at a higher tax rate than what the average person was paying all along and now there is rate parity.