City assessment increases value of 111 Eighth Avenue by 40 percent

January 20, 2012 08:30AM

As if the $1.8 billion Google spent to acquire 111 Eighth Avenue in 2010 wasn’t enough, now the search giant will be hit by a massive property tax bill increase — 17 percent greater than the one it incurred last year.

After some delay, the city will send out its updated property tax assessments, which take affect in July, over the next few days, and according to the Wall Street Journal most bills will increase. But no increase will equal that of 111 Eighth Avenue, which the city valued at $816.6 million, 40 percent more than the building’s assessed value in 2011. It went from the city’s eighth most valuable property to its fifth. As a result, the property’s tax bill will rise $3.9 million to $26.4 million, and will continue to grow another $10.9 million over the next five years as the city phases in tax increases.

The Journal said Google has only itself to blame. The purchase spurred a commercial property value spike in Chelsea that brought 111 Eighth Avenue along for the ride. The second largest tax bill increase, 12.6 percent, belonged to the General Motors Building at 59th Street, which saw its value gain 14.7 percent.

City wide, the average tax bill increase on co-ops was 4.8 percent, topping both the 3 percent increase placed upon on one-to-three family homes and the 2 percent boost for condos. [WSJ]