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New York to tax luxury second homes in NYC

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Re: New York to tax luxury second homes in NYC

#51

Post by saulpw »

bsimpson wrote: post #40

Reactionary taxes like this have a tendency to be ill-considered and have unintended side effects. NY also has a 1% penalty on paying more than $1 million for housing, which was probably enacted to proletariat applause when $1 million was still considered a lot of money. Now it distorts the value of entry level housing in NYC, where you'll have a hard time finding anything more than a studio apartment for $1 million.…

Gosh, 1% on $1m, that's almost $10k! I can see that how would discourage homeownership and distort the market.

Actually wait, I can't.

Re: New York to tax luxury second homes in NYC

#52

Post by javanissen »

nickv wrote: post #17
ch4s3 wrote: post #4

Earlier quoted context omitted.

It seems like a place like Manhattan might benefit from first up-zoning the low slung sections that are currently 4-8 stories. My point here is that I'd start with trying to build enough housing before spending political capital on marginal things that neither unlock supply nor generate much revenue.

You're right, when I think of a place that has an overabundance of 2 floor single family homes, I think of Manhattan.

Do you live here? I do, and I’m astounded by the number of 1- to 3-story buildings and surface parking lots (!) dotted throughout Manhattan, especially outside of the skyscraper clusters in midtown and downtown.

There is an unbelievable shortage of housing that is solvable only by increasing supply and building upwards. It’s not even single-family homes; why are there any one-story buildings in the lower east side?

Re: New York to tax luxury second homes in NYC

#53

Post by sbarre »

giantg2 wrote: post #49
bryanlarsen wrote: post #39

Earlier quoted context omitted.

Top 10% is the upper middle class, not the ultra rich. A successful surgeon making $1M per year is paying well over 40% a year in taxes, while Bezos is paying 1%.

Do you have the data for that? I was wondering about tax paid (as dollars not effective rate- I know effective tends to me lower for HNW individuals due to accountants and other financial professionals they can afford).

> I thought looking at the aggregates that the top 10% pay something like 1/3rd of all income/cap gain taxes.

If we're bringing receipts, how about you start? Do you have the data for this initial statement of yours?

Re: New York to tax luxury second homes in NYC

#54

Post by organsnyder »

ch4s3 wrote: post #24
Daishiman wrote: post #13

Earlier quoted context omitted.

In Manhattan the low zones are due to the soil not being good for higher construction. Lower Manhattan and midtown are made of basalt stone that is extremely strong and apt for skyscrapers.

Bedrock is only a little lower in the "Midtown Gap", and in any case a lot of those 4 story buildings could be 8-10.

I'm guessing it would be tough to make the numbers work demolishing a 4-story building and building one that's only 2-2.5x the square footage, especially with today's interest rates.

Re: New York to tax luxury second homes in NYC

#55

Post by cyberax »

ch4s3 wrote: post #4
mikeweiss wrote: post #2

Good! Second homes in any region with low inventory should be taxed...

It seems like a place like Manhattan might benefit from first up-zoning the low slung sections that are currently 4-8 stories. My point here is that I'd start with trying to build enough housing before spending political capital on marginal things that neither unlock supply nor generate much revenue.

LOL. Why not just build bunkhouses and then rent out bunk beds there? For a cool $5000 a month. Because that's the end goal, isn't it? Manhattan is _already_ one of the densest cities in the world.

It needs a good _downzoning_ to be liveable again.

Re: New York to tax luxury second homes in NYC

#57

Post by webdood90 »

bsimpson wrote: post #40

Reactionary taxes like this have a tendency to be ill-considered and have unintended side effects. NY also has a 1% penalty on paying more than $1 million for housing, which was probably enacted to proletariat applause when $1 million was still considered a lot of money. Now it distorts the value of entry level housing in NYC, where you'll have a hard time finding anything more than a studio apartment for $1 million.…

Who are you protecting here?

You realize a very small subset of the population can afford a million dollar home, let alone a five million dollar home?

The majority of the city does not give a shit.

Re: New York to tax luxury second homes in NYC

#58

Post by dlenski »

mikeweiss wrote: post #2

Good! Second homes in any region with low inventory should be taxed...

We have similar taxes in major cities in Canada (including both metro and provincial taxes here in Vancouver).

Housing is still massively squeezed and unaffordable for many in the Vancouver metro area, but the taxes definitely have encouraged some homeowners to sell or rent their properties, especially foreign investors, and their seem to be few or no downsides for people of middle-class and even moderately-affluent incomes.

I doubt that NYC will lose too much sleep over the protestations from extraordinarily wealthy people who own multiple extraordinarily expensive homes, and where NYC isn't their primary residence.

Re: New York to tax luxury second homes in NYC

#60

Post by lovich »

galleywest200 wrote: post #11
busterarm wrote: post #5

I strongly doubt that this is going to have the effect that they want it to. It won't raise the taxes that they expect it to. It won't free up inventory. It will halt construction.

Taxing second homes would halt construction? Plenty of people out there wish to own a first home, myself included.

This guy thinks a tax on second homes in fucking NYC is going to disproportionately harm the middle class.

He is economically illiterate.

Edit: scratch that, he also mentioned leaving a rent controlled apartment because of a crabs in a bucket mentality. I think he’s lying to push his own political agenda which appears to be that of the rich never paying taxes.

I’ll lol if he’s some pleb like most of us and is just running defense for his “betters”

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