> It is unclear how DOF will treat properties owned by LLCs and trusts. In general, these owners are not considered residents. However, this does not mean that the properties are not used as primary residences. For instance, based on publicly available information, Mayor Bloomberg established his primary residence in two adjacent buildings on the Upper East Side, one owned by an LLC, and the other a cooperative apartment corporation. It may be possible for some LLC owners to rent to themselves and avoid the tax.
Now remember they are changing how property values are assessed. So everyone's base rises and the rich with 2nd homes dont pay the extra tax because they move it into an LLC.
That's a great point. I'm guessing the politicians knew the rich would find a work around, but they're obligated to go through the outward motions so they can claim to keep their promises.
https://comptroller.nyc.gov/reports/the-pied-a-terre-tax-and...
> It is unclear how DOF will treat properties owned by LLCs and trusts. In general, these owners are not considered residents. However, this does not mean that the properties are not used as primary residences. For instance, based on publicly available information, Mayor Bloomberg established his primary residence in two adjacent buildings on the Upper East Side, one owned by an LLC, and the other a cooperative apartment corporation. It may be possible for some LLC owners to rent to themselves and avoid the tax.
Now remember they are changing how property values are assessed. So everyone's base rises and the rich with 2nd homes dont pay the extra tax because they move it into an LLC.
> the rich with 2nd homes dont pay the extra tax because they move it into an LLC
Sounds like something worth addressing as a second phase!
They are not changing how property values are assessed for everyone
LLC pays the tax then. It's still a home that isn't a full-time residence.
The tax is based on residency, not ownership. If nobody lives there as their primary residence, it's subject to the tax.
Simple fix, they need to put mistresses in all their second homes.
That's a great point. I'm guessing the politicians knew the rich would find a work around, but they're obligated to go through the outward motions so they can claim to keep their promises.