Discussion in 'Economics' started by ByLoSellHi, Jul 4, 2009.
This was very predictable. It's also why I've warned you that municipal bonds are a VERY poor vehicle to seek yield enhancement. Do YOU want to be a lender to these local governments? In a few years the Muni bond crisis will DWARF the mortgage securities implosion.
SARATOGA SPRINGS â The city has won another battle in the assessment appeal case brought by the owner of the cityâs largest mansion.
The State Supreme Court Appellate Division ruled Thursday that Saratoga Property Developments, the listed owner of John Breyoâs 60,000-square-foot mansion, must turn over documents to the city to help it assess the property for tax purposes.
The city had assessed Breyoâs home at just less than $20 million and Breyo appealed the assessment, saying that the assessment should be $4.2 million.
He didnât let city officials visit the property to assess it, so after Breyo appealed, they asked for documentation to show how much he paid to have the house built.
He refused to provide it, and the state Supreme Court said he had to. He then appealed the decision to the Appellate Division.
John Aspland, an attorney representing the city in the matter, said Breyo could appeal to the state Court of Appeals,
Aspland expects that Breyo will turn over the documents or a notice of appeal in the next 20 or 30 days.
âThis is going to help the city be in a position to best defend the case,â Aspland said. âIf John Breyo should get a tax reduction, than he should.â
Breyoâs massive home, which Accounts Commissioner John Franck has said is a little bit bigger than the White House, sits on nearly 30 acres.
Franck compared the home to similar-sized homes on Long Island to arrive at his assessment figure.
âTheyâre really just trying to ensure that people are paying their fair share of taxes,â Aspland said of city officials.
Other municipalities in similar situations will look to this decision, Aspland said.
âThis is a case that now in the state of New York can be relied upon by every municipality who is defending a tax assessment case,â he said, because it rules that the documents should be turned over, which had never been spelled out before.
It also will likely affect the assessment appeal brought by fellow mansion owner David Silipigno, who owns a 20,000-square-foot home on Stony Brook Drive.
The city has assessed Silipignoâs home at $7.6 million, but he said it should be valued at $2.1 million.
That case has been on hold pending the resolution of the Breyo case, Aspland said.
In both cases, city officials want to look at design plans, material receipts, pay records, architectural renderings, bills and change orders to determine what the assessment should be.
Breyoâs lawyer was not available for comment Thursday.
I Googled Breyo. He helps CEO's lower their taxes, and other liabilities.
Of course, Florida has a law that your house can't be taken to satisfy your debts. So people put their money in mega-mansions when they feel they are under financial attack.
Could Breyo have felt under attack when the Swiss were going to open their books on U.S. holders of secret accounts? Maybe. This is the most popular method of tax avoidance. His previous apartment wasn't as good as mine. Big, big, jump.
Pabst, I know the spread of AAA to BBB rate on muni bonds is narrow more now with less money coming from the income tax, sales tax, and other. But how likely for a default when a town is not like a business who ends when they have bankrupcy. The town is always there. So how likely a default, and how many times in the history of USA muni bonds that has happen? I know you have more than 20 years of seeing how this bond market works.
did i read that article right when it said a house worth 1.8 million had to pay 53,000 per year in taxes?
that is obscene. in england you pay council tax at varying rates but at the most 3,000 or 4,000 a year.
also you might want to watch out because whatever the council loses in tax it will makes up for. when iceland went bankrupt out county councils lost money and the next day the police went looking for people to fine to compensate the loss.
The dentist across from the street from me did a tear down on his old house. (humongous double lot). Because he didn't keep any of the original structure he was reassessed at something like 2.5 million. (probably a legit assessment based on land value and building costs but a third over what he could sell it for). His taxes are 50 something a year.
so how does it work then is it based on the size and value of the house like a percentage of its value. is it something like 2 or 3 percent of the value a year. you do realise that is what you would be expecting to receive on renting the property out. so it is like buying the house and then having to pay rent for it too. please tell me there is a limit though surely it must be capped at some level.
no wonder so many people in america are getting poor with a system like that and that the poor are so screwed. i always thought that americans had low taxes and that it is free. this is obviously not true.
the worst part is you cannot escape it from what i have read here americans pay tax to america regardless of where they live in the world (correct me if i am wrong it is what i have read here) and the only other country to adopt this is north korea.
Don't hear too much about cities being hurt by bond issuances that have blown up in their face.
All: Here in Minnesota (North Central us) the home are valued in several steps: estimated market value, value of new improvments, limited market value, green acres value, plat deferment, JOBZ amount excluded, this old house exclusion, disabled vet mkt value, and last value... Taxable Market Value.
That's copied right from my notice from the county in which my house is located... So they have many ways to play games with the owner. There is also the major item: residential city or residential farm land. Also there is another fudge factor called the Homestead reduction. If the owner lives in the home, there is a sizeable discount for middle to lower class homes... I just took my 2010 taxable amount to the local elected council and got a NO change is dollar amount and then went to the next higher County Commissioners twice and got about 11 percent reduction in total Taxable Value... I still could take the matter to the State level but early next year there will be a major revamp of all methods used.. ( more games with methods used ) They are set on cranking up more $$ from property owners. In rural areas the farm land has gone up a large amount due to Ethonal production using the # 1 crop produced in usa. Corn. $4/bu corn last year bumped up farm land prices a lot. The cities may get less tax $$ but rural areas will harvest a lot more $$ from farm land. Amazing how many games they can play with so many methods used to determine final Taxable value.. agpilot
Ps: I forgot to add: A golden rule observed here is: All realestate sales must imform the county as to the dollar amount before the sales can be legally transfered to the new owner. Then they know how much to jack up all similar properties in "Market Value." So a few real high priced sales gives them the edge in raising Taxable Market Values to ALL similar property.... The owners job is to point out why his property is not as good as that high priced sale nearby.
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