The goal of this isn't simply to raise revenue, it's also to discourage parking money in empty properties when it's one of the most expensive cities to live in and doesn't have enough housing
The goal of this isn't simply to raise revenue, it's also to discourage parking money in empty properties when it's one of the most expensive cities to live in and doesn't have enough housing
I'm also wondering what effect it'll have on all the people that have been declaring their primary residence in Florida for tax purposes yet actually live up here in NYC a good amount of the time. My neighborhood in Brooklyn is filled with cars registered in Florida. If all of a sudden your pied-a-terre condo in Williamsburg is getting hit with $40k+/year in property taxes it might no longer make sense to try and move your residence to Florida to avoid city/state income tax.
>it's also to discourage parking money in empty properties when it's one of the most expensive cities to live in and doesn't have enough housing
Is that really needed when the homeowner vacancy rate is 1.3% in the New York-Newark-Jersey City MSA?
https://www.census.gov/housing/hvs/data/rates.html
Lots of the highest-value units are famously empty. The "pencil skyscrapers" in particular were called out in the media.
No, the goal is to overhaul the property tax system.
This is going to raise property taxes for everyone.
The ultra wealthy can just pack up and move. It doesn't affect them in the slightest.
But in two years when the property tax overhaul is complete, the middle class will foot the bill. As per usual.
Can you explain how that would happen? This tax is limited to second homes only.
this is literally a cover to overhaul the property tax assessment system in New York.
https://www.msn.com/en-us/money/companies/new-york-passes-ma...
"While the tax seems large, experts say the city's antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said.
Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate."
this is, at minimum, a 10% increase in ALL property taxes. And the people most affected will be the lower and middle class.
That literally has nothing to do with the pied-a-terre tax. The assessment process is not related to taxing second homes. Each can be done with or without the other.
>> City valuations can often be 10% or less of the true market value
> this is, at minimum, a 10% increase in ALL property taxes
If they're ~10x'ing the erroneously low valuation to true them to market value, then that would be more than a 10% increase.
>> Since valuations will skyrocket, the tax rates will fall to compensate
But as the article points out, this is an expected outcome and will be blunted by subsequent tax rate decreases.
All things equal, undervaluing properties for tax purposes isn't fair, although it may be politically (corruptly) popular.
>>But as the article points out, this is an expected outcome and will be blunted by subsequent tax rate decreases.
the tax rate decrease will be on the multi-million dollar homes.
not on the new property tax valuations of everything else.
it will just make rent higher.
Expensive cities will never have enough housing. The cure is to discourage investment in them and force it into less dense cities.
They are expensive largely because of housing so your statement is a bit of a tautology.
Historically NYC housing used to be a lot more affordable before they stopped building, reducing supply relative to demand and thereby raising prices.
Has anyone tried to study how much NYC housing demand is due to having a large foreign-born population (something like 37%)?
https://www.huffpost.com/entry/new-york-city-immigrants_n_44...
Do foreigners require more houses than Americans?
> They are expensive largely because of housing so your statement is a bit of a tautology.
Yes. And that's impossible to fix.
> Historically NYC housing used to be a lot more affordable before they stopped building, reducing supply relative to demand and thereby raising prices.
Demand will _always_ outstrip supply. And there's no such thing as "affordable housing", it's a contradiction like "hot liquid helium". If housing sells, then it's affordable for _somebody_.
What you're talking about is subsidized housing in some form. Like rent control or housing projects.