N.Y. Had a Plan for a ‘Pied-à-Terre’ Tax on Expensive Homes. The Real Estate Industry Stopped It

April 2, 2019. This article discusses New York State lawmakers’ opposition to a pied-a-tierre tax and their support for a real estate transfer tax. The article goes on to discuss lobbyists who argued that a pied-a-tierre tax would cause the high-end market to collapse due to the recurring surcharge. According to the article, lawmakers want to implement a real estate transfer tax that would require a one-time fee on all real estate transactions over $3 million.

When state leaders rallied this month behind a proposal to tax luxury second homes in New York City, it seemed to encapsulate the goals of the Capitol’s new Democratic leadership: The bill would simultaneously help pay for public transit, vex real estate developers and target the überwealthy.

The sudden momentum for the tax surprised even supporters of the proposal, which for years failed to gain traction. But it was especially unexpected to the real estate industry, which had not been consulted on the idea, had not expected it to go anywhere, and had not mobilized against it.

By Friday, the proposal was dead. In its place, lawmakers were discussing a one-time fee on all real estate transactions over $3 million, although that threshold was still fluid.

 “If I had my druthers, it would be to do the pied-à-terre tax because it does target nonresidents,” said Ron Deutsch, the executive director of the Fiscal Policy Institute, a union-backed think tank.

Click here to read the full article from The New York Times.

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