Tuesday, September 23, 2014

Pied-a-terre tax may be on the menu

From Crains:

If Mayor Bill de Blasio pursues the Fiscal Policy Institute’s recommendation for higher taxes on ultraluxury apartments owned by foreigners, he’ll need Albany to do it. And Sen. Brad Hoylman has just the bill.

On Monday, the institute recommended raising taxes on apartments worth more than $5 million owned by noncity residents. An annual surcharge of 0.5% to 4% would raise $665 million a year for the city. The left-leaning think tank says wealthy foreign buyers, often shielded by limited-liability corporations, have been buying up property in Manhattan as vacation homes but pay no income taxes and low property taxes thanks to exemptions and the city’s outdated tax code. It points to a report by the Independent Budget Office that found that in some of the newer residential developments in Manhattan, the portion of pieds-à-terre could approach 50%.

Mr. de Blasio, who earlier this year failed to persuade Gov. Andrew Cuomo to allow him to raise taxes on wealthy city residents to pay for universal prekindergarten, says he is reviewing the proposal. But if Democrats win control of the state Senate in November, the issue could require his attention when the state legislative session begins in January.
Mr. Hoylman, a Manhattan Democrat, plans to introduce a bill Tuesday that would essentially accomplish what the think tank recommended.

Ultrarich property owners from beyond New York "aren't paying income taxes, and are utilizing city services, everything from our infrastructure to our police force, and aren't contributing," said Mr. Hoylman, who noted that several such properties, including 15 Central Park West and several high-rises on 57th Street, are in his district.

"A lot of these individuals are using New York as a tax haven," he added.

The bill would "bring New York in line" with other global cities that have similar surcharges, he said, citing London as one. "This isn't viewed as punitive."

10 comments:

Anonymous said...

YESSS!!!!!

JQ said...

Since they not paying a fair share,I suggest we suspend fire and police services to these "homes" and "residents" until this bill is passed.

I doubt it though,not that my idea is extreme and fascist,but the blaz is afraid and is beholden to these selfish misers.Billy was instrumental in hastening much tower development and ruining brooklyn for the middle class while he was public advocate.

Anonymous said...

Who does this housing benefit - no one but developers and Realtors!

Yes - this is a great idea - so much of the city is now unoccupied - perhaps some will be persuaded to leave.

We need real housing in NYC - not pied-a-terres for the uber-wealthy!

Anonymous said...

He has to find a new source of taxes, to pay to support the illegal aliens that will be getting ID's.

Anonymous said...

gotta shake down people to make your socialist dreams come true.

Its easier to pull people down than to build people up.

Anonymous said...

how about we look into why taxes on a home in eastern queens worth 500,000 is roughly 5,000 BUT a 3,500,000 townhouse in brooklyn is taxed at 3,600 or so........

Anonymous said...

When was the last time the police were called to one of these addresses? Or the FDNY?

Anonymous said...

if they don't contribute to the city then they don't use the resources of the city. its a wash. I'm pretty sure the city is getting more of 'fair share' when it comes to what these people pay in property tax and luxury shopping sprees then what they use in city services. soon this city will have to wealthy tax base to mooch off of. PEOPLE DONT WANT TO LIVE HERE ANYMORE.

Anonymous said...

if they don't contribute to the city then they don't use the resources of the city. its a wash. I'm pretty sure the city is getting more of 'fair share' when it comes to what these people pay in property tax and luxury shopping sprees then what they use in city services. soon this city will have to wealthy tax base to mooch off of. PEOPLE DONT WANT TO LIVE HERE ANYMORE.

This is not a shopping mall - its a city were people live and work. We need people to be engaged in its future, to contribute to economy but also be involved in its governing as citizens who feel its their right, duty and obligation to participate.

If not, its bread and circuses for the masses and an elite that lives walled off from the real world.

That is not a place with much of a future.

Finally, long term residents, citizens, and families are being evicted to give these air-heads a place to play.

That is wrong, wrong, wrong.

JQ said...


If not, its bread and circuses for the masses and an elite that lives walled off from the real world.


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