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Setbacks are part of the property that is still owned by the school. Schools don't (currently) pay property taxes in New York, but whoever buys the buildings wi
by zdragnar 3y ago
Setbacks are part of the property that is still owned by the school. Schools don't (currently) pay property taxes in New York, but whoever buys the buildings will still owe taxes on the property, including the setback.
One of the potential buyers are trying to stop the sale to a different buyer, so the setback isn't at issue. The most one could say is that the setback diminishes the potential taxable value of the property by not allowing larger buildings, but that's somewhat subjective (does the setback itself make the existing footage more desirable?).
- pfdietz 3y agoYes, I understand taxes are still owned on the property itself. But the right embodied in the covenant is another form of property that has been severed from the real property. That right has value (and this value is reflected in the reduced value of the actual property it applies to), but is not now subject to taxation.
- ghouse 3y agoIt's not severed. Still part of the real property and owned fee simple, but subject to use restrictions.
- pfdietz 3y agoYou did not understand what I wrote. I didn't say the eight foot slice was severed, I said control of the right to build on it was severed. That right is an abstract thing, but it has value, and the value is now not owned by anyone.
- zdragnar 3y agoControl over the right remains with the covenant. The city could end it if they so choose.