(The Center Square) – State tax collectors in New York will be thumbing over data provided to New York City as part of its new tax on second homes in an effort to root out tax cheats.
The Hochul administration said in a statement that the New York Department of Taxation and Finance is using Mayor Zohran Mamdani's list of properties that are potentially subject to the new surcharge to identify property owners who haven't been paying their fair share of taxes.
“The pied-à-terre tax was designed to ensure people who can afford luxury second homes, but don’t pay New York income taxes, are still contributing to the city they benefit from,” said a statement from Democratic first elected term Gov. Kathy Hochul.
"If you’ve been falsely claiming to be a nonresident in order to cheat the system, it’s time to come clean – or our Department of Tax and Finance will take action to ensure you pay your fair share," the statement said.
The new levy was approved by Hochul and lawmakers as part of a New York City bailout. It calls for charging eligible property owners a 4% surtax on one- to three-family second homes valued over $5 million and on co-ops and condos valued at $1 million.
An estimated 17,000 property owners could be subject to the tax, and thousands have already applied to the city to be exempted.
The Mamdani administration estimates the new tax will drum up more than $500 million a year for the city to help plug gaps in the budget and fund the new mayor's agenda.
But Mamdani has been criticized for a confusing rollout of the new tax, including the release of a database of affluent property owners who could be subject to it. The list included initially more than 900,000 properties, but pointed out that many of those won't be subject to the tax.
Critics say Mamdani's "tax the rich" campaign has also exposed affluent property owners to doxxing harassment and threats with their names, addresses and other details posted online.
The tax has also been criticized by New York City real estate groups. They say it will cost jobs, increase property values and accelerate an exodus of wealthy households to lower tax states.
Originally published on thecentersquare.com, part of the BLOX Digital Content Exchange.
Please disable your ad blocker, whitelist our site, or purchase a subscription
Sorry, an error occurred.
Already Subscribed!
Cancel anytime
Thank you .
Your account has been registered, and you are now logged in.
Check your email for details.
Submitting this form below will send a message to your email with a link to change your password.
An email message containing instructions on how to reset your password has been sent to the email address listed on your account.
No promotional rates found.
Secure & Encrypted
Thank you.
Your gift purchase was successful! Your purchase was successful, and you are now logged in.
| Rate: | |
| Begins: | |
| Transaction ID: |
A receipt was sent to your email.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.