The administration of New York City Mayor Zohran Mamdani has disclosed how it plans to enforce its new so-called “pied-à-terre tax” on luxury second homes.
The New York Post reports the city’s Department of Finance (DOF) will contact the owners of the targeted properties by Aug. 30. The DOF has subpoena power and will be able to conduct audits going back six years to determine if the properties are eligible for the new tax.
One- to three-family homes worth at least $5 million and co-ops and condominiums valued at $1 million or more are subject to the tax, provided they are unoccupied non-primary residences. The DOF will be able to impose a fine equal to 50% of the tax bill if the property owners provide false information on the status of their residences.
City officials claim the tax will impact about 10,000 properties and generate between $340 million and $500 million. Property owners will have 30 days to appeal or challenge the new tax bill, either to the city’s Tax Commission or, in some cases, to the DOF.
Real estate industry professionals have argued the new tax will create problems for the boards of cooperative apartments, who would be responsible for helping collect the surcharge from shareholders or apartment owners in their buildings.
“The Department of Finance’s proposed rules highlight the serious challenges of implementing the second-home tax fairly,” said Zachary Steinberg, executive vice president of external relations and advocacy at the Real Estate Board of New York. “As the city rushes to roll out this new tax, many New Yorkers—particularly cooperative apartment owners who were never intended to be affected—may be hit with unexpected tax bills and little time to appeal.”
I do not see any issue with the taxing, however the city should have it’s own people collecting…not coop boards
Do you mean you are ok with the new tax being levied?
I believe it will cause a couple of problems. One, less people buying 2nd homes, and Two, owners selling off to avoid the tax. However, that part will open up a few more homes on the market. Either way, more taxes are never good and have the notorious “unintended consequences”.
Who, exactly, would want to buy the homes knowing the tax consequences?
Let the fires begin! Try and find a property valued under 1M!
I betting if the owner can’t keep their property, nobody can!
W
These “second homes” are generally owned by corporate executives who travel to NY to oversee their holdings. Go ahead and tax them… they, and their organizations, jobs, and corporate taxes will soon be in Miami or Dallas. Perfect way. to change NY from the center of finance of the world into a socialist ghetto.
Amen to that!!!
These new taxes will make sure people with a 2nd home that they have available when ever they can travel or work, will get rid of those homes and go somewhere else if they want they won’t be supporting the city when they aren’t there anymore. And all those new taxes will be gone. Then starts the taxes on everyone else that has anything Mandoni and his cronies want to put on New Yorkers. It’s the start of the downfall.
Especially as they are already paying excessive property taxes… nothing like punishing the folks who pay the bulk of the tax budget!!
Well he has to find some way to pay for all the free stuff he promised. And when the big companies and richer folks leave, he will come after the rest, left behind. Great plan!!
It is about time someone thinking about taxing big guys, the Capitalism has exceeded the thresholds and only tax payers are suffering. The funny part of this is at the voting the people have the power to dictate to the candidates, but after election, its all under the table deals with firms and lobbyist. Look, if media covers the truth about everything we will be in a better place. i.e., when the gas price goes up, they should report the revenue of the companies, if both goes up at the same time, then there is something wrong, the revenue has to stay the same, the same goes with electricity and gas prices.
Don’t you think they are already paying taxes on these properties??? Don’t kid yourself that they don’t pay taxes .. that’s a media falsehood…the ultra rich contribute about pay about 40.% of all income taxes paid… they pay a lower rate because most of their income comes from dividends which are taxed on a lower rate… but hopefully they will be moving to more business friendly states like Ga and we can benefit from their contributions…
As FDR said many years ago, when he wanted to add taxes on the rich, “many of my friends say they will go overseas or live elsewhere, i want to wish them well, I for one will miss them”. Rid your mind of these myths about economics and thoughts about behaviors that make no sense.