April 2, 2019. This article discusses the proposed pied-a-terre tax in New York State that would generate revenue to help fund the transportation system in New York City by taxing out-of-state apartment owners in Manhattan. The article highlights that lawmakers are proposing a real-estate transfer tax on all high-end sales, in place of a pied-a-terre tax, to avoid challenges with revenue becoming entangled with foreign ownership rights. The article quotes FPI’s executive director, Ron Deutsch, who suggests that the state should consider a combination of a pied-a-terre and a real estate transfer tax on properties worth over $5 million.
The proposed pied-a-terre tax that would target foreign and out-of-state owners of Manhattan apartments to fund mass transit repairs is facing a roadblock and could be replaced by a real estate transfer tax for all high-end sales, state officials said Tuesday.
The real estate transfer, or an increase in a similar existing tax, are being considered to raise funds that won’t get tangled in city assessment issues and complex foreign ownership rights under a pied-a-terre tax, state officials said.
“The State Legislature should be looking at both pied-à-terre and an enhanced Real Estate Transfer Tax on properties valued at over $5 million. They need not be mutually exclusive,” said Ron Deutsch of the labor-backed Fiscal Policy Institute. “Let’s face it, if you can afford to buy a Manhattan condo for $5 million . . . in cash, you can afford to pay a little more in tax.”
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