Tax implications of converting from 4 family to 2 or 3 (Bedsty)

We are considering a multifamily (4 family) which we would like to convert to a 2 or 3 family.  Taxes are currently quite high as a 4 family. Once the conversion is finished, would the taxes be reduced to that in line with a 2 or 3 family in the neighborhood ? And is it a long process before the new taxes come into effect? Thanks

crownheights2012

in Conversion 12 years and 7 months ago

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housepoor | 12 years and 7 months ago

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I converted from a 4 to a 3 some years ago and my taxes dropped, but not nearly as much as I would have expected. Remember that improvements you may do in conjunction with the CofO change are not subject to the periodic limitation on changes in your taxes  — you get hit with all of the increase in value attributed to the work *  tax rate at once. Perhaps if you do the bare minimum in order to do the conversion, you can get close to the full benefit of the lower tax rate. When we closed out our building permit, the tax assessor came out to take a look. By the next tax cycle or rate had changed and total bill fell by around 20%. If only it stayed that way! Also remember you are proposing a change in use which can trigger some unanticipated requirements if you are not careful…like full house sprinklers.