Let me tell you, sponsors and management representatives know their numbers and their privileges better that you and I. They will rather see all the sharaeholders (incl. the sponsor)being assessed for the difference before they agree to pay the little return shareholders get back from the assessment. Why? Probably because of good accounting and reporting to the IRS.

The method of calculation gets you the same results, but the correct way is through asessment of the entire amount. (Now don''t tell me I have answered your question!):

To demonstrate that all routes lead you to Rome, I am calculating it both ways:

$36,000 / 10 shareholders = $3,600
$36,000 / 9 shareholders = $4,000

Difference = $400

The sponsor gets to pay the $3,600

Now, your original question also had the component of windfall for shareholders and sponsors paying a bit more. THIS IS BOGUS! The sponsor PAYS its fair share of taxes and is not giving each shareholder $400 as a hand-me-down. Otherwise, they would VEHEMENTLY OPPOSE it.

NOW... I''ll try to explain it once more. PLEASE KEEP AN OPEN MIND AND DON'T RUN YOUR MOUTH. ALTHOUGH INSULTING, IT SHOWS YOUR INABILITY TO ARGUE:


1. Your city tax invoice is already reduced, i.e., if your total tax bill were $100,000 without the abatement program, your NYC bill states pay me $64,000 (which you pay to NYC assessor) and you have the commission by NYC to distribute amoung 9 qualifying shareholders $36,000, which is the size of the abatement.

2. Well, each shareholder through maintenance including the sponsor is paying to NYC by way of management: $64000 / 10 shareholders = $6,400 instead of the full tax of $100,000. (remember: $36000 + 64000 = 100,000)

3. So you have 9 qualified shareholder and for $36,000 or $4,000. But, you do not have $36,000 (due to your budgeting) and you need an assessment to distribute the $36,000.

4. So you now assess for the entire abatement to all the shareholders, i.e., $36,000 / 10 = $3,600.

5. You return $4,000 back, and each shareholder gets $400 net.

6. What does this tell you? (and excuse my repetition)

A. Through the building NYC tax bill each shareholder including the sponsor paid $64,000/10 = $6,400.
C. Through assessment all shareholders paid $3,600.
D. Total amount paid for taxes by each shareholder:
$6,400 + $3,600 = $10,000!!!
E. You are returned $4,000. Your total tax paid to the city is $6,000, because you qualified for the abatement.
Since you paid through maintenance $6,400 - 400 (returned to you) = $6,000.
F. The sponsor does not get the abatement, so he pays the alloted total NYC tax value of the building:

$6,400 + $3,600 = $10,000.

Now you sit down with the NYC tax invoice and go through the motions of figuring the arithmetic out.

You'll get my point!

In a separate mailing I will clarify my questions.

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