The Real Deal New York

Mayor de Blasio likely to nix pied-à-terre tax

"The absentee-landlord tax is a nonstarter," source says

December 10, 2014 01:20PM

pied

From left: Unit at the Park Imperial, Mayor Bill de Blasio and State Senator Brad Hoylman

Mayor Bill de Blasio is expected to reject proposed legislation to levy a tax on pieds-à-terre.

“My understanding is a luxury tax for absentee landlords is not going forward,” an unnamed source told the New York Post. “The absentee-landlord tax is a nonstarter.”

The mayor’s office is reviewing the proposal as it prepares its legislative agenda for the state. State Senator Brad Hoylman announced in September he would formally present a plan by the Fiscal Policy Institute in January allowing the city to tax pieds-à-terre. The rate would be escalating, depending on the value of the property. Homes owned by non-residents worth between $5 million and $6 million would be subject to a surcharge equal to half a percent of the value of the unit.

Real estate insiders have expressed concern that the tax would impact buyer sentiment at various price points and slam the luxury market. [NYP]Mark Maurer

  • JEng

    If this goes through, it should at least remove rent regulated buildings from being subjected to the tax.

  • htpalmer

    Oh please already. All the real estate companies care about is their sales. They really couldn’t give a hoot about their clients and if they were honest they’d admit as much. A small increase in taxes would do the city good and of anyone can afford a $5 million dollar pied-à-terre, then surely a small tax won’t hurt them. It’ll be taken care of by the increased worth of the apartment.

    • JEng

      well word of mouth is important and the buyers might mention it to their friends who are also foreigners how hassle free owning in NYC is compared to London or Paris.

  • no-permits

    deblasio is a bum

  • JEng

    Senator Hoylman was nice enough to email me back and explain that this tax would not affect rent regulated buildings such as ours so now I don’t have to care about this anymore.

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