Filed under: Are You Kidding?, Real Estate | Tags: abatement, Gentrification, taxes
Philadelphia has been in a budget crisis for some time now. When Nutty Mayor Nutter tried to force his iron will and close a dozen branch libraries a few months ago, the people fought back and won. Many library advocates at the time pointed to the city’s 10 year, transferrable tax abatement program for rich ass condos in Center City as the cause of the city’s lagging tax revenues.
And now, dear reader, we bring you the penthouse condo tax abatement to end all Philly tax abatements.
Behold 50 16TH STREET S 56/57 PHILADELPHIA, PA 19102. For a cool $30,000,000 (yes, 30 MILLION DOLLARS) you can live on top of one of the city’s twin towers in a small-ish 16,000 square foot penthouse.
The nice (read: baby killer) realtors also just throw in the description: “In addition, the owner of this residence will enjoy a 10-year tax abatement.”
We’re pretty sure the owners of this “residence” (read: monster mansion deathtrap) will enjoy a little more than the tax break. But what exactly would those pwned 0wners be paying in taxes for this swank pad in the clouds, if the city of Philadelphia chose to tax them sometime in the next 100 years?
Using the Philadelphia Forward guide to taxes, we will do the math for you.
30,000,000 market value x .32 = assessed value of 9,600,000 (9.6 million..chump change!). Then we take 9,600,000 and multiply by 8.264% real estate tax rate which equals $793,344 in taxes, annually. per annum. each year.
So EACH YEAR people, the scumbags who live in the 50 16th st penthouse get a 793,344 DOLLAR TAX BREAK. Multiply that by 10 years, and the city just lost out on $7,933,440 in tax revenue. Almost $8 million on one apartment. Gee, that sounds like enough to save the libraries and open the pools, doesn’t it?
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