Photo courtesy of Josh Haner/NY Times
Imagine getting stuck with a $25,000,000 tax bill. That could be the realty for the New York Giants and the New York Jets.
The city of East Rutherford, NJ is in the process of “attempting” to charge the New York Giants and the New York Jets $25,000,000 for property taxes of their new stadium. I say attempting because the city is currently trying to collect $745,000 in property taxes on their practice facility according to Bloomberg.
According to the article East Rutherford Mayor James Cassella says the city plans to levy taxes on the stadium next year if it’s successful collecting them on the training facility. So, just to clear this up for you…they are going to see if the Giants and Jets pay the $745K and the turn around and bill them for $25 million to see if bookkeeping catches it or if they just cut that check.
I wonder if a city, state or federal agency has ever pulled that stunt on the general public. “Mr. and Mrs. Jones didn’t question their $50 bill so let’s bill them for $5,000.” Maybe that is the plan to keep the Social Security System profitable as the Baby Boomers start to retire?
The former Giants Stadium was publicly owned and was exempt to property taxes. According to Bloomberg, “At East Rutherford’s tax rate of about $1.54 per $100 of assessed value, a $1.6 billion stadium would generate a bill of about $25 million. That’s almost as much as the community of 8,700 people collected from all of its taxpayers in 2008, according to a 2009 bond issue.”
Seems like a lot, but if the economy were on its way up and businesses were placing their names on the stadium, then it appears that the Giants and Jets had a company willing to pay $25 million a year.
According to the New York Times, “Allianz the German insurer, was willing to pay $25 million a year to put its name on what was going to be the only stadium in the N.F.L. with two teams.” But, it seems that the economy has put a halt on that investment. Too bad Allianz couldn’t have taken care of the potential tax bill.
Teams are always raising ticket prices to be able to meet the expenses that they have. So, it may not be wise for the East Rutherford public to demand the Giants and Jets pay that $25 million tax bill. This year, the Giants raised non-premium tickets 26% to $111.69 while the Jets jacked up their non-premiums seats 31.8% to $114.64 while the NFL average price increase was 4.5% according to the New York Daily News. Imagine what the hike will be if the two teams have to pay that bill!
Although our previous tips on Battling your Property Taxes will not help these guys, they are some great starting points for lowering your property tax bill.
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.