The Real Deal New York

Mayor de Blasio likely to nix pied-à-terre tax

"The absentee-landlord tax is a nonstarter," source says
December 10, 2014 01:20PM

Mayor Bill de Blasio is expected to reject proposed legislation to levy a tax on pieds-à-terre.

“My understanding is a luxury tax for absentee landlords is not going forward,” an unnamed source told the New York Post. “The absentee-landlord tax is a nonstarter.”

The mayor’s office is reviewing the proposal as it prepares its legislative agenda for the state. State Senator Brad Hoylman announced in September he would formally present a plan by the Fiscal Policy Institute in January allowing the city to tax pieds-à-terre. The rate would be escalating, depending on the value of the property. Homes owned by non-residents worth between $5 million and $6 million would be subject to a surcharge equal to half a percent of the value of the unit.

Real estate insiders have expressed concern that the tax would impact buyer sentiment at various price points and slam the luxury market. [NYP]Mark Maurer