armsmasher
That isn't the point I'm making. Ultra-luxe condos are taxed the same way as normal condos are. It's the same mechanism. But the formula is crude and can't anticipate that there might be condo buildings with no comparison in the rental market.
<i>I think it would have made the analysis better to have also ranked the dollar value of tax revenue per dwelling unit</i>
The charts I included do show the dollar value of tax revenue per 10 units that sold for extraordinary prices. Perhaps these dollar values (e.g., $17,000 per year) do seem very high, but that is a matter of perspective. If you are the owner of a $5 million condo, and you pay $17,000 annually in property taxes, it will seem outrageous that the owner of a $100 million condo pays the same. This is why it's important to compare effective property tax rates. Just comparing numbers or digits is meaningless in a discussion about in/equity.
<i>I don't think there is a scenario where the city gets the tower, the condo sells for $100 million, AND the city gets 1.7% each year in property taxes.</i>
Perhaps not. I still think the burden is on the city and state to demonstrate why the inequity is warranted.
They are taxed like condos—they are condos. I think the larger issue in this story is that the tools for assessing tax value are crude and don't allow the city to assert a progressive taxation. The range between 0.017 and 1.7 is large, and the city needs to be able to find a target taxation that draws in revenue without warding off services. There's no reason to believe the limit there is 0.017 percent.