Why billionaire Ken Griffin can snag property tax bargain

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Ken Griffin won’t have to worry about the tax man — at least when it comes to New York City real estate.

Last month, the billionaire investor behind the Citadel hedge fund snagged a 23,000-square-foot condo on Central Park South for a record-breaking $238 million.

But when it comes time to pay his tax bill, the Citadel boss will only be paying on a property value of $9.4 million — less than 4 percent of the real sticker price, The Wall Street Journal reported Wednesday.

Griffin isn’t the only one in the building who will benefit from the lower tax rate. Although the total listing value of the condos in the skyscraper under construction is $3.4 billion, city tax assessors valued it at a tiny fraction of that — just $157.6 million, the Journal reported.

Accordingly, Griffin can expect a property tax bill of $516,500 in July, representing a 0.22 percent effective tax rate.

Meanwhile, the effective tax rate is much higher for Griffin’s neighbors in Staten Island. Joseph Siciliano, a former city garbage collector, pays an effective rate of 1.2 percent on his 2,600-square-foot Staten Island colonial, which is valued at just under $870,000.

The reason for the staggering discrepancy is New York City’s property tax system, which assesses co-ops and condos based on rental income in nearby buildings.

The tax code benefits high-end property owners throughout Manhattan and trendier parts of Brooklyn, the Journal found.

In fact, Mayor Bill de Blasio and Griffin have at least one thing in common: their 0.22 percent effective tax rate on their New York City real estate.

Hizzoner is expected to foot a bill of $4,197 on his $1.94 million Park Slope townhouse — less than half the $10,450 that Siciliano in Staten Island expects to pay, the Journal reported.

Reps for the mayor didn’t immediately respond to requests for comment. Citadel declined to comment.

Published in New York Post, Feb. 27, 2019

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