New York Takes Two-Step Approach on Multimillion-Dollar Second-Home Tax
The New York Times • • nation
Key Points:
- New York Governor Kathy Hochul has proposed a tax surcharge on second homes valued at $1 million or more in "market value," primarily targeting co-ops and condos owned by wealthy part-time residents.
- The tax surcharge would be phased in over two years, ranging from 4 percent to 6.5 percent in addition to existing property taxes.
- The "market value" used for taxation often significantly underestimates the actual sales price of luxury properties, creating uncertainty about how many homes will be affected.
- The governor's office estimates a $1 million market value corresponds roughly to a $5 million sales price, but examples show discrepancies can be far greater, with some properties selling for tens of millions more than their market value.
- The proposed tax aims to generate $500 million annually for New York City, though details remain unresolved and are expected to be contentious.