The Real Deal New York

De Blasio’s mansion tax would impact one-fifth of Manhattan sales

2.5 percent tax would generate $330 million for low-income seniors
March 24, 2017 08:15AM

More than one-fifth of Manhattan home sales would be impacted by the mayor’s proposed “mansion tax,” according to a new analysis from the city’s Independent Budget Office.

Mayor Bill de Blasio is pushing for a 2.5 percent levy on sales over $2 million. “I don’t think anyone doubts that that means they are someone of means, if you can afford a home of $2 million or more,” he said in Albany earlier this week, Crain’s reported.

According to the IBO analysis, 85.6 percent of sales above $2 million between 2014 and 2016 were in Manhattan. Of the city neighborhoods with the most “mansion” sales, 11 of 12 were in Manhattan.

City Hall believes the mansion tax would generate $330 million annually and could benefit 25,000 low-income seniors.

The tax needs state approval, and Gov. Andrew Cuomo is pushing for the extension of the state’s millionaires’ tax.

“A second millionaire’s tax would seem to be a bit much, even for those who seem inclined to [support] it,” SUNY professor Gerald Benjamin told Crain’s. “And they’re not necessarily millionaires. These could be families with two earners who make $200,000 or $300,000 apiece per year, paying off the apartment monthly.”

The mayor ended a press conference Thursday to promote the mansion tax when reporters asked off-topic questions. The presser was in Midtown, With 432 Park Avenue in the background. Sales there would have raised an estimated $30 million with a mansion tax in place. [Crain’s] — E.B. Solomont