Posted by New York Tenant on June 22, 2001 at 10:09:01:
In Reply to: Real Estate Tax posted by jane on June 21, 2001 at 14:21:48:
This is the way real estate tax escalation works in commercial buildings. The real estate tax escalation that you pay for any given tax year (July through June) is usually "additional rent" and does not become a permanent part of your rent, unlike most rent increases under rent control and rent stabilization.
That is why the comparison for the current tax year is always made against the real estate taxes in the base tax year, and not against the real estate taxes in the previous tax year.
: i have a standard loft lease in a classification of miscelaneous office building in brooklyn.
: i pay "5% of the real estate taxes above those assessed and paid for the year 1998/99." [lease]
: can anyone explain to me why i pay 5% of the increase between 1999 [the base year] and the current year as opposed to 5% of the increase between the PREVIOUS year and the current year? the billings department at my LL couldnt explain it, he just said that is what is done. just wanna make sure that IS what is done generally.
: thank you!! jane
Note: Posting is disabled in all archives
Post a Followup