On April 6, I attended a rent law town hall hosted by Cooper Square Committee. Our Senator Brad Hoylman, Assemblyman Harvey Epstein, former Assemblyman (now Senator) Brian Kavanagh and other electeds were there. They described the rich possibilities to strengthen the rent laws this year, as the Democrats hold the biggest majority in the State Senate since 1912. It was a veritable love fest of pro-tenant legislative possibilities they put forth.
But the landlord lobby still looms, which Hoylman explained as the reason his Pied-a-Terre Tax was axed out of the budget. I think the Pied-a-Terre Tax is magnificent and have cheered Hoylman on for years. It would have raised almost double for the MTA what its substitute, the congestion pricing plan which did pass, is projected to raise.
That the landlord lobby killed it is potent: there is no single politician in NY today who has gotten more money from real estate interests than Andrew Cuomo. He is the landlord lobby’s #1 favorite politician to fund. I think Senator Hoylman is being charitable in blaming “the landlord lobby.” I say follow the money.
State Senator Brad Hoylman (center) discusses the Pied-a-Terre Tax at a February press conference. (Photo by Sabina Mollot)
By Sabina Mollot
A real estate tax bill sponsored by State Senator Brad Hoylman that had recently gotten its second wind after languishing in the capital for years has just been killed in the finalized state budget. After being fought tooth and nail by the real estate industry, what had been dubbed the Pied-à-Terre Tax was instead substituted with other tax increases.
The Pied-à-Terre tax, which would have been charged to owners of properties worth over $5 million that are not the owner’s primary residence, was besieged by accusations that it would gut the luxury market and even significantly reduce the value of impacted units.
Prior to its demise, Hoylman acknowledged all the controversy and various headlines surrounding it.
“We’re calling it the Pied-à-Scare Tactic,” he told T&V. “They’re trying every argument against it.”
After reading the piece on pied-à-terre taxes, I couldn’t help but wonder when I might read a story about State Senators, City Council members, or the mayor suggesting we actually cut back on certain types of expenses to help pay the bills that come due.
Rather we live in an era where spending more, increasing benefits paid for and entitlements is the annual plan and the solution is always another, or an increased, tax.
Slowly read the story about this proposed tax. It is a tax on people who “are not subject to city or state income taxes” because they are not permanent residents. They pay real estate taxes, maintenance of their homes, employ people and pay our generous sales taxes when they spend money here. But we want to tax them so we can have enough capital to offer early retirement at 50 percent of the final year’s wages to city employees.
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.