On unoccupied or secondary residences specifically, not on wealth overall. This is more of a housing policy?
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New York passes pied-a-terre tax
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Re: New York passes pied-a-terre tax
#32As I understand it many of the very wealthy do not "own" properties directly but control LLCs that do. The chain of trust/LLC ownership can be complex. Also as I understand it, this legislation does not really answer that call effectively -- though I have, of course, not read the full legal text myself.
I suppose in Ken Griffin's case, even if his residence is owned by an LLC he controls, he is known to reside in it. But how effective is this legislation when the purpose of LLC ownership is expressly anonymity and accounting convenience?
Re: New York passes pied-a-terre tax
#33[flagged]
Real Estate can't move out of New York. Someone else would have to buy it.
Re: New York passes pied-a-terre tax
#34Flagged misleading editorialized title.
Actual title is "New York passes Mamdani’s pied-a-terre tax"
Re: New York passes pied-a-terre tax
#35Property tax is the workable wealth tax. There's no such thing as a perfect policy, but in the context of NYC this seems worth trying. I'll be interested to see if it helps create some liquidity in the housing market (the goal), or if it only functions as revenue source. One wrinkle I haven't heard much discussion of -- cities respond to incentives too. NYC is a global destination for the mega wealthy. If it turns ou…
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Re: New York passes pied-a-terre tax
#36This is fantastic news for the Miami real estate market. Does anybody has stats as to how many homes this would actually affect?
Re: New York passes pied-a-terre tax
#37[flagged]
If I tax you one cent would you budge? This is what this tax amounts to the ultra wealthy.
Re: New York passes pied-a-terre tax
#38Surpriosingly sane idea suddenly
Re: New York passes pied-a-terre tax
#39[flagged]
This argument is used again and again and I wonder: Why do "people with money" stay where they are when there are countries, islands, even just states where there is less taxes to pay?
Re: New York passes pied-a-terre tax
#40I think this is in the right direction, but the cut off at $1M is interesting. Why's there an obsession with the $1m cutoff? The dollar has been turned to dust. $1M is not that much money, especially in housing, especially in NYC. Why tax $1m second homes and not second homes generally? Effectively, you're going to tax almost all second homes. So why the arbitrary cutoff? Chicago wanted to add a "millionaire's tax" o…
1 million remains the hallmark of 'wealthy' (as in: not us), to the point where pop culture has started mocking the concept decades ago (See: That Austin Powers movie...) Hardly everyone understands 'owning a house' as millionaire-level wealth. Which is why people cheer the policy on until they realize it is them who is being shaken down.
Sure, but it's only a shakedown if it's an unoccupied second home, which is hard to have sympathy for. It can easily be an occupied second home (family, renters) or a first home for those in the upper middle class paying for $1mm+ apartments in NYC. I'm not really worried about Jeff Bezos or some Hollywood actor's crash pad when they have business in nyc.