The Real Estate Board of New York is opposing a proposed new state-level tax on wealthy owners of part-time homes in the city, warning that tax collections would slip if the bill were enacted.
REBNY president John Banks told the Wall Street Journal the so-called pied-a-terre tax was a “bad tax that has no analysis behind it.” He said that if wealthy foreigners stay away from the city, it could cut into revenues of local businesses ranging from restaurants to taxis, and hurt apartment values. Condo and co-op sales fell 12% last year.
The measure, which has the support of Gov. Andrew Cuomo, could be enacted in the next few weeks as legislators seek new sources of revenue to close a large budget gap.
The nonpartisan Citizens Budget Commission has urged the state to take more time to study potential impact of the measure before acting, according to the WSJ.
Pictured: Central Park Tower
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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