There’s One For You, Nineteen For Me

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Taxes TBD:

With a 2.49% property tax increase “looming”, this is a good time to take a look at property for sale listed with taxes TBD. Mostly you’ll find this in new construction and recent condo conversions.

Here’s what usually happens. The town uses the sale price of the condo and multiplies it by the tax rate and tax ratio to get the annual base tax. Since it is not the custom of the town to reassess each year, this base is what will go up by 2.49% next year.

For example you buy a nice 2 bed/2 bath or $600k this month. The 2007 tax rate is 3.49 and ratio is 29.79. Combined this is 1.04% of the sale price or… $6238 in taxes. However, if you purchased a similar $600k unit in 2005 when the combined number was 1.25% Your starting taxes in 2005 would have been $7496 and then adjusted according to the overall property tax adjustment each year for 2006 & 2007.
The moral of the story…taxwise new construction is a better deal than it was two years ago.

Instead of a tax increase, they should just raise the price of a parking ticket to $1000.

HOBOKEN Tax Rates

Year Rate Ratio
2007 3.490 29.79
2006 3.434 34.45
2005 3.287 38.01
2004 3.216 43.16
2003 3.242 49.49

information deemed reliable but not guaranteed

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