New Tax Proposed For NYC Properties—What To Know
Summary
Governor Kathy Hochul is proposing a new tax on expensive second homes in New York City, targeting properties worth $5 million or more. This tax aims to raise $500 million a year and responds to pressure from New York City Mayor Zohran Mamdani, who wants wealthier residents to pay more to help close the city’s budget gap.Key Facts
- The proposed tax targets second homes in NYC valued at $5 million or more.
- It could affect about 13,000 second-home properties in the city.
- The tax would likely have different rates for different property values, with higher-value homes paying more.
- Mayor Zohran Mamdani supports the tax as a way to fairly fund the city budget by taxing wealthy residents.
- Governor Hochul and others worry that higher taxes might cause wealthy people to move to states like Florida or Texas with lower taxes.
- The Real Estate Board of New York criticizes the tax, saying it could harm the city’s economy and property values.
- The tax proposal is part of ongoing budget talks in New York state but is not yet finalized.
- The city has seen a decline in second homes held for seasonal or occasional use, from 75,000 in 2017 to 59,000 in 2023.
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