Tax abatement

[christopheb]

I was interested in learning a little bit more about the 10 year tax abatments for new construction. Specifically, what year were the tax abatements first granted. I don't think they've been around for 10 years yet. I'm wondering how the values of the properties that have been granted abatments will fair once they expire.

[thoth]

I was interested in learning a little bit more about the 10 year tax abatments for new construction. Specifically, what year were the tax abatements first granted. I don't think they've been around for 10 years yet. I'm wondering how the values of the properties that have been granted abatments will fair once they expire.

My understanding is that it's a 10 year abatement from the date of sale.

[phillyaggie]

I could be wrong, but the 10-year abatements started in 1997-98 and were limited in scope by geography and type of development. Due to the success of that small change, the scope was enhanced further in subsequent years.

And indeed, your 10-year tax abatement starts when you first renovate/rehab the property. The first buyers take advantage of it and the clock starts ticking...so there may be many properties on the market now that took advantage of the abatement in 1997-98 and their 10 years ran out a couple years ago.

But someone like shosh or others with more knowledge can correct me and explain it much better.

[billy ross]

It started out around 97 as a 3 year abatement. DiCicco pushed it, as I recall. It went to 10 year around 2000. The clock starts with the issuance of the CO.