State Senator Brad Hoylman discusses his legislation in Albany, which the Council is now actively supporting. (Pictured with Hoylman) Assembly Member Harvey Epstein, Council Member Mark Levine and Assembly Member Deborah Glick (Photo by Sabina Mollot)
By Sabina Mollot
A few weeks after an out-of-state hedge fund billionaire purchased a $238 million penthouse apartment on Central Park South, two City Council members have introduced a resolution in support of a pied-à-terre tax.
Currently, in New York, non-residents are not subject to state or city income taxes and do not pay New York sales tax while outside the state. The proposed tax, which would affect homes that cost over $5 million if they’re not the owners’ primary residences, isn’t new. It was first introduced in 2014 by State Senator Brad Hoylman and Assembly Member Deborah Glick. However, with Senate Democrats now in the majority in Albany, it has a better chance at getting passed this year than ever before.
The City Council resolution was essentially a show of support for the tax, made by Members Mark Levine and Margaret Chin. At a press conference in front of City Hall on Monday, Levine and other Manhattan lawmakers argued that such real estate investments by out-of-state and foreign buyers are keeping buildings dark while the city gets done out of badly needed revenue.
“It’s a surcharge on property tax, so we can capture taxes from people who don’t really live here,” added Glick, who was also at City Hall.
Councilmember Keith Powers at a rally last year (Photo by Maria Rocha-Buschel)
By Sabina Mollot
After hearing from tenants who’ve paid up to six months worth of rent in various fees just to get a lease, Council Members Keith Powers and Carlina Rivera have introduced a package of five bills aimed at giving renters a break.
So far, Powers said 26 members of the Council out of 51 have signed on as co-sponsors.
One bill, sponsored by Powers, would limit broker fees to one month’s rent, which seems to be the typical amount charged. However, in some cases renters are charged up to 15 percent of the annual rent. This bill has already seen some pushback by the Real Estate Board of New York.
REBNY has argued that limiting the amount that can be charged isn’t fair to brokers, because they work solely on commission. In response, Powers said that he intends to listen to any concerns, and isn’t completely opposed to the idea of there being some negotiation between broker and renter, but also says the current business model isn’t fair to renters.