Mansion tax rakes in record-breaking revenue

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

TRD 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
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

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

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

Real estate development not coming to Rikers Island, mayor says

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties

NYC is on the hunt for an Amazon replacement in Queens

Bill de Blasio and The Oval Office (Credit: Getty Images)

“It’s gonna suck for us”: Real estate sounds off on de Blasio’s presidential bid

Mayor Bill de Blasio and Commissioner Steven Banks and 127-03 20th Avenue (Credit: Getty Images and Google Maps)

Critics sue to block College Point homeless shelter

arrow_forward_ios