New York Governor Predicts Fewer Will Pay New Housing Tax
Summary
New York Governor Kathy Hochul now expects about 10,000 luxury second homes in New York City to be taxed under her proposed pied-à-terre tax, down from an earlier estimate of 13,000. The tax, part of the state’s $268 billion budget, targets expensive second homes owned by non-residents to raise an estimated $500 million yearly and help the city’s finances.Key Facts
- The pied-à-terre tax applies to second homes in NYC valued over $5 million owned by people who live elsewhere.
- Tax rates range from 0.8% to 1.3% based on property value.
- Co-ops and condos will face higher, temporary rates of around 4% before moving to the graduated scale.
- The tax is expected to bring in about $500 million annually and will expire after five years unless renewed.
- New York’s real estate industry strongly opposes the tax, arguing it will reduce property values and increase costs for local owners.
- The tax is included in the state budget deal that is overdue and expected to be voted on soon.
- Earlier proposals for similar taxes were defeated, but this one appears likely to pass.
- The tax is intended to raise revenue from wealthy non-residents without broadly increasing taxes on all New Yorkers.
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