Council pushing pied-à-terre tax

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.

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