Mansion tax could keep home prices under $1.75M

IBO report predicts de Blasio’s proposed law could influence sellers

TRD New York /
Jun.June 01, 2015 04:50 PM

Mayor Bill de Blasio’s proposed mansion tax could influence home sellers to keep their prices under $1.75 million for fear of discouraging buyers with the tax hike above that threshold, according to a new report by the Independent Budget Office.

De Blasio proposed the tax last month in conjunction with his 421a plan. New York state and the city already have a mansion tax of 2.825 percent on purchases over $1 million, Crain’s reported. The proposal would tax an additional 1 percent on purchases over $1.75 million and 1.5 percent on any portion of the price exceeding $5 million.

The monitor found that a homebuyer making a $1.75 million purchase would pay $49,437.50 in taxes, while for a $1.76 million purchase they would pay $67,320. A $10,000 price differential would result in a $17,882 bump in taxes, which could induce home sellers to stay under the $1.75 million line, justifying brokers’ fears.

Properties over $5 million would not be as seriously affected because the tax is only on the amount over $5 million. [Crain’s] — Tess Hofmann


Related Articles

arrow_forward_ios
Mayor Bill de Blasio (Getty)

New law shields restaurateurs, retailers who quit leases

New law shields restaurateurs, retailers who quit leases
(Credit: iStock)

No Covid break for big properties with unpaid taxes

No Covid break for big properties with unpaid taxes
Mayor Bill de Blasio (Photo by William Farrington-Pool/Getty Images)

Who made de Blasio’s real estate reopening council — and who didn’t

Who made de Blasio’s real estate reopening council — and who didn’t
Mayor Bill de Blasio (Credit: Getty Images; iStock)

Bleeding cash, de Blasio outlines $2.7B in cuts, higher fines

Bleeding cash, de Blasio outlines $2.7B in cuts, higher fines
City could lose out on $14B in tax revenue: report

City could lose out on $14B in tax revenue, 500K jobs: report

City could lose out on $14B in tax revenue, 500K jobs: report
Mayor Bill de Blasio (Credit: Getty Images and iStock)

City to move some homeless into hotel rooms

City to move some homeless into hotel rooms
Mayor Bill de Blasio delivered the message this week ahead of a formal plan to combat social gathering in the city. (Credit: Lev Radin/Pacific Press/LightRocket via Getty Images and Cindy Ord/Getty Images)

New York City to enforce social distancing at parks, playgrounds

New York City to enforce social distancing at parks, playgrounds
Mayor Bill de Blasio (Photo by William Farrington-Pool/Getty Images)

Mayor questions allowing condo construction during pandemic

Mayor questions allowing condo construction during pandemic
arrow_forward_ios

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

Loading...