New tax may force lot owners to build or sell

TRD New York /
Nov.November 24, 2013 11:00 AM

 A new tax hike on vacant land could soon force owners to make a decision: build or sell. As Public Advocate, Bill de Blasio pushed for the tax, which would affect some 10,500 lots throughout the city, but as mayor, de Blasio has pledged to see his plan through.

De Blasio’s plan calls for a hike in yearly tax rates on vacant land by an average of $15,300, following a five-year phase-in period, according to estimates by the Independent Budget Office, cited by Crain’s. The idea is that by placing such an economic burden on unused lots, owners will choose to develop much-needed housing. However, some are less hopeful that the plan will have the intended effect.

“It would drive the price of land down and increase development, to the extent the tax increases are significant,” Robert Knakal, chairman of Massey Knakal Realty Services, told Crain’s. “The more expensive [vacant land becomes to hold], the less of it you will get—that’s Economics 101.”

But regardless of how the plot plays out on the ground, it would most certainly generate revenue for the city. The city estimates that the tax would generate $162 million annually, which could in turn fund the construction of approximately 4,000 new units. [Crian’s]Christopher Cameron


Related Articles

arrow_forward_ios
Melania La Rocca

Buildings commissioner talks priorities in final de Blasio years

WeWork layoffs loom, de Blasio is skeptical of commercial rent control

WeWork layoffs loom, de Blasio is skeptical of commercial rent control

When Bill de Blasio announced the end of his campaign, the industry reacted largely with relief but not surprise (Credit: Getty Images and Pixabay)

De Blasio’s campaign is dead, and real estate is happy

Gary Barnett says luxury market is crowded, WeWork IPO woes continue: Daily Digest

Gary Barnett says luxury market is crowded, WeWork IPO woes continue: Daily Digest

The development site at 98 Dekalb Avenue and Rockrose Development's Justin and Henry Elghanayan (Credit: Google Maps)

Rockrose is moving into Brooklyn

The blackout impacted a 42-block stretch of Manhattan between the Hudson River and Fifth Avenue (Credit: Getty Images)

Con Ed still searching for answers in Manhattan blackout

Residential dev site in a LIC Opportunity Zone hits the market

Residential dev site in a LIC Opportunity Zone hits the market

Mayor Bill de Blasio and Rikers Island (Credit: Getty Images)

Real estate development not coming to Rikers Island, mayor says

arrow_forward_ios