Property Tax Question Renovation vs New Construction (real estate, attorney)

[alexk22]

Just bought a one family house in Queens. I'm planning a complete reconstruction of the house with only the cellar to remain from the old structure, however the zoning and the occupancy of the house will remain the same. Will this be considered a new construction or just an alteration as far as the city property taxes are concerned?

I've heard somewhere that certain percentage of existing walls must remain so the assessed value of the house will not increase more than the 6% annual maximum permitted by law even though the actual market value of the property may double after alterations are completed. I've scoured the City building and administrative codes but could not find anything specific. Will appreciate and help and/or guidance on this subject

[jcoltrane]

Originally Posted by alexk22

Just bought a one family house in Queens. I'm planning a complete reconstruction of the house with only the cellar to remain from the old structure, however the zoning and the occupancy of the house will remain the same. Will this be considered a new construction or just an alteration as far as the city property taxes are concerned?

I've heard somewhere that certain percentage of existing walls must remain so the assessed value of the house will not increase more than the 6% annual maximum permitted by law even though the actual market value of the property may double after alterations are completed. I've scoured the City building and administrative codes but could not find anything specific. Will appreciate and help and/or guidance on this subject

Spending all that money. Spend a little more on the professional advice of a tax accountant and/or tax attorney, each with real estate specialty!

[SeventhFloor]

Originally Posted by alexk22

Just bought a one family house in Queens. I'm planning a complete reconstruction of the house with only the cellar to remain from the old structure, however the zoning and the occupancy of the house will remain the same. Will this be considered a new construction or just an alteration as far as the city property taxes are concerned?

I've heard somewhere that certain percentage of existing walls must remain so the assessed value of the house will not increase more than the 6% annual maximum permitted by law even though the actual market value of the property may double after alterations are completed. I've scoured the City building and administrative codes but could not find anything specific. Will appreciate and help and/or guidance on this subject

It will be considered a new building. I can't help you on the assessment part.

[I_Love_LI_but]

Originally Posted by alexk22

Just bought a one family house in Queens. I'm planning a complete reconstruction of the house with only the cellar to remain from the old structure, however the zoning and the occupancy of the house will remain the same. Will this be considered a new construction or just an alteration as far as the city property taxes are concerned?

I've heard somewhere that certain percentage of existing walls must remain so the assessed value of the house will not increase more than the 6% annual maximum permitted by law even though the actual market value of the property may double after alterations are completed. I've scoured the City building and administrative codes but could not find anything specific. Will appreciate and help and/or guidance on this subject

Sounds like you want to have your cake and eat it too here. FWIW, I have heard that "leaving at least one retaining wall" for those purposes is a myth. Although I could be wrong.

Ask your builder for attorney/tax professional recommendations to figure out the best strategy. He probably has come across people in the course of doing business that he can recommend.