New York property tax discount in new buildings

Property buyers in Manhattan, New York has always discussed the issue of buying in a new building which usually comes with a 421A tax abatement.  The tax abatement basically means for the first 10 years, the new property owner will pay a discounted tax amount.  The tax amount usually increases over 10 years to the full tax amount.

For example, if the full tax amount is $1000 per month, the owner of a new building may pay $100 per month the first two years, $200 per month the next two years etc.