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New York's second home is over 5 million or taxed

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2019-03-27 05:19:02


Recently, Mayor Bai Sihao and City Council Speaker Kerry Johnson said they strongly support the additional tax on homeowners in New York City who have a second home worth more than $5 million. The bill was proposed five years ago but has not been passed. This bill has regained attention as a result of the recent record of luxury apartment transactions in New York. Bai Sihao said: "I think millionaires and billionaires are not taxed high enough." He added: "temporary housing tax" is consistent with other tax proposals he has proposed, including the collection of individuals with incomes over $500,000. The so-called "Millionaire Tax" is used to raise funds to improve the city's old subway system. This surcharge will be levied on an annual basis and covers all apartments or homes in the city that are worth more than $5 million and are used only by the owner as a second home.


The bill was first proposed by Democratic State Senator Brad Holman in 2014, but was not passed at the state Senate controlled by Republicans. Since the Democratic Party has controlled the entire legislature this year, the bill is expected to be promoted. According to the New York Times, New York Governor Kummer agreed with the tax. Last month, hedge fund manager Ken Griffin bought a set of apartments on the edge of Central Park for $238 million, setting the record for the most expensive residential sales in the history of the United States. At the same time, this has rekindled the interest of legislators in the imposition of a “temporary residence tax”. While Griffin and its hedge fund company Citadel are primarily concentrated in Chicago, the property is likely to be just his temporary home.


Johnson wrote on social media: "The $228 million home is likely to be vacant, and there is hardly any example of how the New York City tax inequality is growing." He will also "temporary residence tax" Known as one of the city's many new potential sources of income. According to the proposed tax plan, Griffin is required to pay a tax of $8.89 million per year. Today, more and more big cities around the world impose additional taxes on owners who buy second homes. If the bill is passed, the city will join the ranks. In 2016, the UK began to impose a 3% property tax on second homes, but in the eyes of many real estate agents, this is a major cause of the severe weakness in the London property market.

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Tags: city council mayor bai shihao new york city real estate in new york
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