City Council member floats pied-à-terre tax resolution

Measure would support Albany legislation looking to impose surcharge on $5M-plus properties

From left: Corey Johnson and Brad Hoylman
From left: Corey Johnson and Brad Hoylman

Manhattan City Council member Corey Johnson plans to introduce a resolution here in Gotham supporting Albany’s efforts to tax the city’s pieds-à-terre.

Johnson began crafting his measure the same day Senator Brad Hoylman, also representing Manhattan, announced legislation that would levy a tax for nonresidents who own New York City apartments valued at more than $5 million. Should Johnson’s measure pass, it would signal to Albany that New York’s City Council supports measures being pushed at the state level.

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“I think that it is sensible and fair to ask folks that have apartments and property in New York City to contribute to the revenue for the city in a meaningful way,” Johnson told Crain’s. “This would only touch the folks who are very wealthy, or have very high-valued property.”

The proposed pied-à-terre tax, first outlined in a Fiscal Policy Institute blog post on Monday, speculated that the city could raise $665 million a year by imposing an annual surcharge of between 0.5 percent and 4 percent on luxury secondary homes in New York.

Several real estate insiders have sounded warning bells about the proposed legislation, which they say would have a negative impact on the market, as The Real Deal previously reported. [Crain’s]Julie Strickland