The Real Deal New York

Fiscal Policy Institute to mayor: tax pied-à-terres

Of the city's 89,000 second homes, more than 1,550 are worth at least $5M
September 22, 2014 10:00AM

The Fiscal Policy Institute is proposing that the de Blasio administration start taxing very expensive pied-à-terres in the city.

In a report on Monday, the left-leaning institute proposed the idea of taxing those who don’t occupy their very expensive apartments. The tax, however, would require Albany’s approval.

“It’s consistent with the mayor’s earlier proposal for funding universal Pre-K in that most of that would have been paid by the richest people,” James Parrott, the Fiscal Policy Institute’s chief economist, told Capital New York.

Roughly 89,000 apartments in New York are owned by people who don’t occupy the units year-round. Of those apartments, Capital reported, roughly 1.74 percent — the equivalent of 1,556 apartments — cost more than $5 million. About 445 of those vacant apartments are more than $25 million. [Capital NY] — Claire Moses