Huge Estate With Local Ties Got Amazing Tax Breaks
|November 1, 2013||Posted by Staff under Rent recovery or avoidance|
This 2013 excerpt of Seattle PI, July 17, is by Neil Vigdoor.
Copper Beech Farm, a 50-acre compound on the waterfront of Greenwich CN, has been listed for $190 million, believed the be the highest listing in the United States. The property boasts a carriage house with a clock tower, co-joined heptagonal pools, a greenhouse, wine cellar and grass tennis court.
When John Rudey, the owner of the expensive residential property, procured a designation for most of his Greenwich CN compound as forestland, he — a timber tycoon and known as Copper Beech Farm — was able to reduce his real estate tax liability by more 80 percent, or $720,000 annually.
“I knew that it was a way of dodging taxes, realizing that some day he would sell it for a subdivision and make a fortune on it,” said Ted Gwartney, Greenwich’s assessor from 2003 to 2012.
In a May interview with the newspaper, Ogilvy said that the ability to subdivide the estate for future development factored into the property’s jaw-dropping listing price.
With the discount, the town’s valuation of Copper Beech Farm has plummeted from $84.6 million to $21.3 million.
The forestland designation on 40.6 acres of the property’s 50 acres goes back to 1984, when Rudey bought the compound from Carnegie Steel scion Harriet Lauder Greenway.
Gwartney is no fan of the law, but said he couldn’t unilaterally strip the property of the tax exemption. “I would have loved to have assessed it for its future value as a subdivision.”