It’s baaack: City Council proposes new “mansion tax”

Measure would take slice of high-dollar resi transactions

New York /
Apr.April 05, 2016 09:03 AM

The City Council is bringing back Mayor Bill de Blasio’s once-defeated “mansion tax” proposal.

The Council included a potential new tax on high-value residential property deals in its response to the mayor’s 2017 budget proposal.

Under the plans, apartment buys over $1.75 million would be taxed at 1 percent, and those worth over $5 million at 1.5 percent. The Council also proposed a new tax on carried interest, the method by which many private equity managers are compensation, the Wall Street Journal reported.

All told, the lawmakers estimated the taxes would bring in around $410 million next year. The Council earmarked those funds for social programs for immigrants, women and youth. In total, the suggested budget calls for $790 million in new spending.

The Council’s proposed rates are the same as those pitched by de Blasio last year.

That measure was defeated by Albany lawmakers last year. The new proposal would similarly require approval at the state level. [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
Senator Chuck Schumer and Senator Joe Manchin (Illustration by Kevin Cifuentes for The Real Deal with Getty)
Manchin-Schumer deal closes real estate tax loophole
Manchin-Schumer deal closes real estate tax loophole
L+M’s Ron Moelis and 180 Broome Street (L+M, City Realty, iStock)
L+M accused of overcharging tenants at 421a building
L+M accused of overcharging tenants at 421a building
From left: General Motors Building, One Vanderbilt, MetLife Building, and the International Building (Wikipedia, iStock)
Nation’s highest-taxed office buildings are all in one neighborhood
Nation’s highest-taxed office buildings are all in one neighborhood
Former WeWork CEO Adam Neumann (Getty Images, iStock, Yard 8 Miami, Stacks on Main, Trulia, Power Design Inc., Inkwell Decatur, Wikipedia, Illustration by Kevin Cifuentes for The Real Deal)
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
NYC hotel property taxes skyrocketed to 30% of revenue: report
NYC hotel property taxes skyrocketed to 30% of revenue: report
NYC hotel property taxes skyrocketed to 30% of revenue: report
Stephen Ross and Charles Kushner (Getty)
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Attorney General Letitia James, Tax Equity Now’s Policy Director Martha Stark and Mayor-Elect Eric Adams (Getty)
Do-or-die: Group files final appeal for property tax reform
Do-or-die: Group files final appeal for property tax reform
From left: Robert Mercer with 48-05 Metropolitan Avenue and Gary Barnett with 17 West 60th Street (Getty, Google Maps, Bulado General Contractors Corp)
$730M loan bundle funds slew of NYC projects
$730M loan bundle funds slew of NYC projects
arrow_forward_ios

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

Loading...