It is harder now than ever to sell your home in New York City. Middle-class families across the 5 boroughs are worried about how they are going to recover. Our city is hurting, and we need real solutions. But instead of prioritizing our communities, Albany is trying to raise taxes on homeowners as high as 13.5%. This will hurt families trying to recover, diminishing the value of their life-long investment, and it will slow development, threatening thousands of jobs for blue-collar and service-industry workers.
This tax would cover 1.6% of Albany’s budget deficit. In the process, it will force homeowners to reappraise their homes every 3 years and provide evidence to the city of their movements to prove their home value and residency to get out of the tax. This is a massive burden on middle-class families trying to build their nest egg and Albany wants to impose that during a recovery to cover just 1.6% of the shortfall.
Albany wrote a bill that they claim will target second homes of billionaire oligarchs, but they have failed to account for the burden it places on New York City homeowners. From expensive reappraisals to proof of residency, it will be costly and invasive for New Yorkers to escape. Co-op owners may have no way to avoid the tax, as the surcharge is placed on the entire building for just one absent owner.
New Yorker homeowners will be forced to make difficult choices if they leave the city for any reason. Seniors leaving for the winter, working people taking a residency to further their career, grandparents helping their children with a newborn, and people needing an out-of-state medical procedure will face this penalty if they leave for 6 months and may subject their entire co-op to the additional tax.
We need to fund our schools, improve our transit, and support our public services, but not at the expense of workers and the middle class. We are calling on Albany to find real solutions to close the budget gap. Adding a new tax on homeowners is not the solution.
Contact your legislator
Albany needs to hear from NYC residents. We are worried about our recovery and their risky tax on homeowners will hurt the middle class. Contact your legislator and share your story to tell Albany they need to fix the budget. Raising taxes on the middle class is not the solution.
Albany's New Tax on Homeowners (pied-a-terre tax) S4199
- Proposed by Senator Brad Hoylman (D) of Manhattan
- Reflects a recurring, annual tax for years to come
- Applies to apartments with an assessed value above $300,000 that would be used as a non-primary residence for the new owner
- Apartments assessed at $300,000 typically sell for under $5 million
- Co-op and condominium owners would pay a tax of 10%-13.5% of Assessed Value over $300,000
- Charges one to three family homeowners a tax of .5%-4% of market value over $5 million
- EXEMPTIONS MUST BE PROVEN TO AVOID THE NEW TAX:
- Primary residence
- Primary residence of owner’s child or parent
- Revised appraisal at less than $5 million
- Rented as a primary residence to a tenant