How does the tax incentive work?

It seems that everyone who visits our Sales Center has questions about our tax incentives.  The City of Albany and the Albany School District have opted into a state program called the 485-a Residential-Commercial Urban Exemption. You can read the legal language here.

Since that is even more confusing, look at it this way: The city is taking the current value of the building (pre-development) and “freezing” it for 8 years. That value is divided among the 24 condos to be built at 17 Chapel. As an example, one of our condos which currently is priced at $470,250 (Suite 605 Empire) would be taxed as if it were worth $27,598. This luxury home will taxed as if it were…well…what can you buy in the City of Albany for $27,598?

The actual tax rate will vary – and of course, is sure to increase over time. At current tax rates as of April 2010, the taxes in the above example work out to $856 per year ($71/month). That includes property (city/county) and school taxes. Add to that whatever annual percentage increase to that you think reasonable and it’s still insanely low!

Beginning in the 9th year, the assessment phases up to full valuation, 20% each year.

Call or visit our sales office if you would like to learn more. The figures above vary for each condo in the building, we have all of the information available upon request.