Tax impact of brownstone reno

Hi, I’ve been looking at Brooklyn brownstones that require decent renovations, and trying to understand tax impact of the reno. Anybody have experience with this?
From what I see, many brownstones in BK Hgts, Cobble Hill, Carroll Gardens (tax class 1, small homes, single to 3-family) benefit from the city’s cap on how much homes’ Assessed Billable Value (AV) can rise: 6pct per year or 20pct over 5yrs. In a rising mkt, the gap between the city’s Estimated Mkt Value (MV) and the property’s AV increases, but there is little impact on affordability of the property due to the cap. But City tax code says that the cap does NOT apply if you’ve done renovations.
On many standard brownstones a reset of the cap on AV back to 6pct of the MV would mean annual taxes (~20pct of AV) jump from the 5-8k range to 25-35k range.
Anybody know the extent of renovations that could trigger the cap to come off, or why it seems few properties have experienced this jump in taxes? Thanks!

benji

in General Discussion 8 years and 11 months ago

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dmdesmond | 8 years and 11 months ago

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I’d love to hear more about this as well. I was under the impression that rebuilding changed your taxes, not renovation. For example, tearing down a property to put a newer building in it’s place would jack up your taxes. Am I wrong?