UPDATED, March 29, 2018, 6:35 p.m.: What’s behind the sudden revival of Albany’s proposed pied-à-terre tax and why is the real estate industry so concerned?
Gov. Andrew Cuomo has expressed his commitment to the legislation following a recent report that suggested the momentum behind the tax was waning. Under the current original proposal, nonresidents who own homes with a market value of at least $5 million would be charged an annual fee. Brokerage executives have warned such a tax would hurt the city’s already soft luxury market, particularly among new developments.
In a press conference early Friday evening, the governor announced that the legislature was working on a replacement tax — a transfer tax — to include in the budget. Though pied-à-terre won’t make it into the budget, which is due April 1, it could be pushed through at a later date.
In part one of a two-part series, reporter Erin Hudson and producer Adam Pogoff ask a lawyer and appraiser — both of whom stand to gain from the tax being enacted — what’s worrying them and why.
Watch the video above to see what they said.
Update: This story has been updated to include the news that a transfer tax would be included in the state’s budget.