The growth of Queens Center Mall and the Macerich Company has been aided by property tax abatements that have cost the city of New York tens of millions of dollars. Under the Industrial & Commercial Incentive Program, which recently became the Industrial & Commercial Abatement Program, the Queens Center Mall property saved over $48 million in property taxes between 2004 and 2009. It is predicted that total reductions of tax bills due to ICIP and ICAP exemptions between 2004 and 2019 at Queens Center Mall will exceed $129 million.*
These tax breaks have helped Macerich’s bottom line, with sales increasing from $623 per square foot at the time of the 1995 purchase to $876 per square foot in 2008. Whether in boom times or an economic recession, Queens Center Mall remains one of the most profitable malls per square foot in the entire country.
*Because future tax rates have yet to be determined, this estimated predicted tax savings utilizes a 15-year averaged tax rate of the class 4 tax rates from 1994/1995 through and including 2008/2009 for tax years going forward.