Mansion tax rakes in record-breaking revenue

State levy pulled in $259M; de Blasio mulls NYC version

New York /
Mar.March 20, 2014 08:05 AM

The state’s mansion tax on homes that changed hands for at least $1 million produced $259 million in the 2012-2013 fiscal year — a 22 percent jump from the last fiscal year and a record high.

The tax generated $176 million amid the recession-era 2009-2010 fiscal year, 45 percent below the level it is at now. In New York City, the tax, which was initiated in 1989, especially makes a dent on the finances of many wealthy condominium and co-op owners.

In Harlem, for example, a 1,300-square-foot two-bedroom apartment at 2098 Frederick Douglass Boulevard is asking $1.2 million. The luxury tax would be an extra $11,950.

Assemblyman Brian Kavanagh of the East Side proposed a bill to have the luxury tax threshold heightened to $1.75 million residences.

“With the average price of an apartment in Manhattan now exceeding $1 million, what was meant as a tax on the rich has become a tax on the average home-buyer in our area,” Kavanagh said in a statement, as cited by the New York Post. “The runaway real estate values throughout New York City have caused this tax to be applied to one- or two-bedroom apartments that certainly cannot be classified as ‘mansions.’”

Sources have said that Mayor Bill de Blasio might consider creating a new rate for luxury homes that sell for more than $5 million, for example, in line with the mansion tax, as The Real Deal reported in January. The mayor has not raised the idea publicly. [NYP]Mark Maurer


Related Articles

arrow_forward_ios
Mayor Eric Adams and Bill de Blasio (Getty)
3 things you missed while cheering de Blasio’s departure
3 things you missed while cheering de Blasio’s departure
Photo via NYCEDC
NYC floats $5B coastline extension in Lower Manhattan climate plan
NYC floats $5B coastline extension in Lower Manhattan climate plan
Mayor’s Office of Climate and Sustainability director Ben Furnas and The Real Deal's Hiten Samtani (Ben Furnas)
Exit interview: New York’s climate chief on reshaping the city
Exit interview: New York’s climate chief on reshaping the city
From left: Gov. Kathy Hochul, Mayor Bill de Blasio, Public Advocate Jumaane Williams, and Rep. Lee Zeldin
Here’s where the top contenders for NY governor stand on real estate
Here’s where the top contenders for NY governor stand on real estate
Council members Margaret Chin and Carlina Rivera (Getty, iStock)
City Council tweaks Soho rezoning, assuring its passage
City Council tweaks Soho rezoning, assuring its passage
Douglas Development's Jeffrey Levine, Toll Brothers' David Von Spreckelsen and Mayor Bill de Blasio (Getty, Toll Brothers)
De Blasio defied warning that he stop asking developers for donations
De Blasio defied warning that he stop asking developers for donations
The City Council reached a deal on a bill that will require new buildings with fewer than seven stories to go electric in 2024, and then will apply to buildings taller than that in 2027.
New buildings must go electric under City Council deal
New buildings must go electric under City Council deal
Austin, Texas (Credit: iStock)
Austin’s mansion market is booming
Austin’s mansion market is booming
arrow_forward_ios

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

Loading...