Some Queens realtors are not supportive of Mayor de Blasio’s proposed mansion tax, a policy City Hall is once again pushing that would create a 2.5 percent marginal surcharge on residences that sell for more than $2 million.
The mayor has said that the tax would raise more than $330 million in revenue yearly to fund rent subsidies for 25,000 low-income seniors. It would be a marginal surcharge paid by the buyer that would add to the existing 1 percent fee on sales reaching $1 million or above. Unlike the 1 percent tax, it would only be applied to the value over $2 million. (For example, a $3 million sale would have a $25,000 tax under de Blasio’s proposal in addition to the $30,000 required by the 1 percent tax.)
Long Island Board of Realtors President David Legaz called the mayor’s intention to fund low-income senior housing “laudable” but said that the cost should be borne “equally among New York City citizens.”
According to de Blasio spokeswoman Melissa Grace, the average price of a residence reaching the proposal’s threshold is $4.5 million.
“At a time when many of those buyers are likely to receive a significant federal tax cut, we believe it’s urgent they contribute more to help seniors in need,” she said.
Eight percent of New York City sales between 2014 and 2016 exceeded the proposed tax’s threshold, according to a report last week from the Independent Budget Office.
Most places that pricey are in Manhattan, although several Queens neighborhoods had sales north of $2 million last year: Forest Hills Gardens, Douglaston, Whitestone, Flushing and Astoria.