432 Park Avenue, designed by Rafael Viñoly is the tallest residential tower in the Western Hemisphere. One57 designed by Pritzker Prize winning architect Christian de Portzamparc has service run by Hyatt’s five-star staff from their Park Hotel. This is Billionaires Row, a stretch of new super tall residential skyscrapers with multi-million dollar apartments in midtown Manhattan.But many of these 100 million dollar apartments that have been purchased, now sit empty, and their owners pay less in property taxes than the average New York City homeowner. These apartments are a safe investment. They’re also lucrative. Not only because the New York City housing market keeps climbing upwards, with a 52 percent price increase, and new developments over the past five years, but also because they don’t cost a lot to maintain. That’s because their taxes are so low. The billionaires who own these apartments are paying a tiny fraction of the taxes that they’d be paying if they lived in a regular apartment building of the same price. Look at this chart by CityLab. It shows how much the apartments would be taxed if the city used the average property tax compared to how much they’re actually paying. The reason why they’re not paying anything in taxes is because New York City’s property tax laws were put into place in 1981. New York City sorts all property into four classes; small residential, large residential, commercial, and industrial. Classes one and two are for the small and large residential buildings. The buildings we’re looking at fall under class two, since they are almost all individually owned condominiums without rental incomes, the city’s Department of Finance chooses a comparable rental building, and creates an imaginary income statement for the condominium based on how much its rental counterpart is making. Then they formulate a property tax off of that number. They don’t take into account the sale price. So, that 100 million dollar price tag is ignored. The problem is is that there is just no comparable buildings for those on Billionaires Row. Any comparison is a wild undervalue. So, billionaire owners pay the property tax rates of buildings with way, way less value. Not that they’re complaining, and there’s more additions on the way. 111 West 57th Street, designed by SHoP Architects is the skinniest, super tall building in the world. Central Park Tower also called the Nordstrom Tower is not completed yet, but will top out as the tallest residential building anywhere. When architect Jean Nouvel’s new building nicknamed The MoMA Tower is complete, it won’t compare to any rental building. After all, do any of those have temperature controlled wine vaults? The owners of Billionaires Row pay less property taxes by percentage than most homeowners. But Mayor Bill De Blasio and a Democrat-filled city council formed an advisory commission on property tax reform in May. They’re looking for a way to make their system revenue neutral, which would hopefully balance out the vast disparity in property taxes. Even still, the buildings have passed a literal shadow over Central Park, and have noticeably changed the New York City skyline. But one thing is for certain, this is where the money is. Leave a comment below, throw us a like, subscribe, and ring the bell to be notified for our next video.