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New State Budget Enacts Congestion Pricing, High-End Transfer Tax
(This article has been updated with new information)
Gov. Andrew Cuomo and state legislative leaders reached an agreement Sunday on a state budget for fiscal 2020. The budget will include congestion pricing for Manhattan, reportedly the nation’s first such program, and a so-called “mansion tax” of 4.15% on residential property transactions greater than $25 million.
The governor had said Friday that instead of a “pied-a-terre” tax on non-primary residences, he was considering “a real-estate transfer tax on high-end properties, residential and commercial.”
Both congestion pricing and the mansion tax are intended to help fund the Metropolitan Transportation Authority. The top rate of 4.15% for high-end property sales, which takes effect July 1, is projected to raise $365 million that will be used to support up to $5 billion in financing for MTA projects.
“This budget delivers on our promise to develop sustainable funding for the MTA, and addresses critical transportation needs throughout the state,” said Assembly Speaker Carl Heastie.
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