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New York Gov. Kathy Hochul is doing a big u-turn from her January promise of no new taxes. James Keivom for NY Post<\/p>\nThey\u2019re flooding the market.<\/p>\n
The trigger point for a controversial new tax on luxury second homes in New York City could be lowered from $5 million to $1 million of a property\u2019s assessed value \u2014 potentially squeezing even more homeowners.<\/p>\n
Gov. Kathy Hochul\u2019s office finally spilled details on her and Mayor Zohran Mamdani\u2019s envisioned pied-\u00e0-terre tax Thursday, revealing a convoluted two-phase plan that could ultimately lead to drastic changes to the city\u2019s unloved property tax system.<\/p>\n
The so-called \u201cpied-\u00e0-terre\u201d tax would apply to second homes in condos and co-ops with assessed values exceeding $1 million and one-to-three family homes assessed at over $5 million.<\/p>\n
New York Gov. Kathy Hochul is doing a big u-turn from her January promise of no new taxes. James Keivom for NY Post<\/p>\n
The proposal \u2013 first reported by the New York Times<\/a> \u2013 also blindsided state lawmakers with whom Hochul has been engaged with never-ending budget negotiations and whose approval is necessary for the tax plan.<\/p>\n \u201cThis budget process is broken. It needs to be fixed,\u201d an exasperated state Sen. Leroy Comrie (D-Queens) said, griping that lawmakers learned the proposal from the media instead of the governor.<\/p>\n \u201cWe should know these things. It shows a level of disrespect.\u201d<\/p>\n Hochul\u2019s proposal is the latest concession to Democratic socialist mayor and his lefty followers engaged on a tax-hike crusade targeting the rich.\u00a0<\/p>\n The pied-\u00e0-terre tax emerged as Mamdani\u2019s envisioned levy on the city\u2019s millionaires fizzled, in no small part because of Hochul\u2019s opposition.\u00a0<\/p>\n The governor instead agreed to pursue the tax on luxury second homes, initially pitching it with Mamdani as targeting properties worth $5 million or more \u2013 roughly 13,000<\/a> across the city, according to her office.<\/p>\n The tax would bring in $500 million a year, Hochul and Mamdani argued \u2013 although that estimate was quickly disputed by city Comptroller Mark Levine, who found it\u2019d bring in closer to $340 to $380 million<\/a>.<\/strong><\/p>\n Experts warned that putting the levy in place would be enormously complex, in large part because of New York City\u2019s byzantine property tax system and problems with even identifying what homes should be taxed.\u00a0<\/p>\n The proposal circulated by Hochul\u2019s office represented a stab at a solution.<\/p>\n Pied-\u00e0-terre properties based in one-, two- or three-family homes would still only have to pay the tax if the assessed market value of the property was over $5 million.<\/p>\n Those valued between $5 million and $15 million would pay an 0.8% surcharge, under the proposal.<\/p>\n \t\t\t\t\t\t\tStart your day with all you need to know\t\t\t\t\t\t<\/p>\n \n\t\t\t\t\t\t\tMorning Report delivers the latest news, videos, photos and more.\t\t\t\t\t\t<\/p>\n \t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n The rate would increase to 1.05% for properties between $15 and $25 million, and 1.3% for those at the highest level.<\/p>\n A part-time New York City resident\u2019s single-family home with a $11.5 million assessed value would pay a $92,000 surcharge, according to the proposal.<\/p>\n
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rfaraino<\/p>\n