New York lawmakers are finalizing a state budget that may include a pied-à-terre tax targeting secondary single-family homes in New York worth $5 million or more. The measure could take effect as soon as July 1. Draft legislation would impose a 0.8% to 1.3% surcharge on secondary single-family homes meeting the threshold. Second co-ops and condos with market values of $1 million or more would be taxed between 4% and 6.5% during the first two years. After the initial two-year rollout, a uniform rate structure would apply across single-family homes, co-ops, and condos, with rates varying by market-value brackets. Owners would be notified by Aug. 30 and could contest inclusion. Exemptions would cover New Yorkers who mainly live in the city, properties occupied by immediate family members, and properties leased as rental units.
"Under the proposal, second co-ops and condos with a market value of $1 million or more would be taxed between 4% and 6.5% during the first two years of the tax being rolled out, according to multiple reports. A 0.8% to 1.3% surcharge would be paid by secondary single family homes with market values of $5 million or more, Bloomberg added."
"Following the first two years of the tax's rollout, a uniform tax rate would be placed across all single family homes, co-ops and condos-with a 0.8% rate paid by homes worth $5 million to $15 million, a 1.05% rate paid by homes worth $15 million to $25 million and a 1.3% rate paid by homes worth $25 million."
"Property owners included in the pied-à-terre tax will be notified by Aug. 30, Bloomberg reported, adding owners will be able to contest their inclusion and that New Yorkers who mainly live in the city will be exempt as lawmakers have framed the tax as a way to target property owners who are not full-time New York City residents. Exemptions also include properties occupied by immediate family members of the property owners and properties leased out as rental units."
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