Could pied-à-terre tax find its way upstate? At least one New York legislator hopes so.
Gothamist • • business
Key Points:
- Governor Kathy Hochul proposed a pied-à-terre tax in New York City targeting second homes valued at $5 million or more, potentially raising $500 million in revenue.
- State Senator Pat Fahy introduced a plan to extend this tax option statewide, allowing local governments to opt in and taxing second homes worth $5 million or more at rates between 0.5% and 4% annually.
- Fahy's proposal aims to address housing affordability and generate revenue, with half of the tax proceeds going to the state's Aid and Incentives for Municipalities fund and half remaining with local governments.
- The proposal faces opposition from some lawmakers and real estate professionals who argue it could harm affordability or that second homeowners already contribute significantly to local communities.
- While legislative leaders are open to discussing the idea, Governor Hochul expressed skepticism about including the statewide tax in the current budget amid ongoing negotiations.
