Court decision a win for owners of second homes in NYC

Ruling on residency seen costing city and state $300M in taxes

New York /
Feb.February 21, 2014 02:40 PM

Just because you own property in New York doesn’t mean you have to pay New York taxes, a high court has ruled.

The New York State Court of Appeals declared that tax auditors must prove out-of-state residents use their New York properties as their own homes in order to charge city and state income taxes.

The state is expected to to lose a large share of the $300 million in annual revenue assessed through residency audits, tax lawyers told the Journal, the Wall Street Journal reported.

“It is an important decision that could significantly alter the way New York taxes people alleged to be residents,” said Jack Trachtenberg, a tax lawyer at Reed Smith LLP and former taxpayer advocate, to the Journal. Previously, New Yorkers who lived at least 183 days in the state were considered residents.

The decision is a big win for professionals with second-homes or investment properties in New York City, just as the city is about to hike rates by 3.8 percent for single-family homes and 5.5 percent for co-op owners, as The Real Deal previously reported. [WSJ] — Angela Hunt


Related Articles

arrow_forward_ios
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Democrats look to curtail tax break for “pass-through” businesses
Democrats look to curtail tax break for “pass-through” businesses
Democrats look to curtail tax break for “pass-through” businesses
Regeneron CEO Leonard Schleifer and 777 Old Saw Mill River Road in Tarrytown (Getty, Jim.henderson/Wikimedia)
Biotech firm Regeneron plans $1.8B expansion in Westchester
Biotech firm Regeneron plans $1.8B expansion in Westchester
The land near Albert’s Landing (Google Maps)
Preservation fund weighs $6M purchase in East Hampton
Preservation fund weighs $6M purchase in East Hampton
Donald Trump and Allen Weisselberg (Getty)
Trump Org, CFO systematically cheated on taxes, prosecutors say
Trump Org, CFO systematically cheated on taxes, prosecutors say
Chris Burch and the 6.9 acre property (Getty, Out East)
Chris Burch returns to Hamptons with $29M Water Mill estate
Chris Burch returns to Hamptons with $29M Water Mill estate
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Principal Deputy Assistant Attorney General Pamela S. Karlan and New York Policy Director Martha E. Stark. (Getty, NYU, Tax Equity Now)
NYC property tax reform advocates call for DOJ intervention
NYC property tax reform advocates call for DOJ intervention
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...