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NY is actually pretty good and very aggressive when it comes to collecting taxes so I have no doubt that if enacted this tax will be collected. Hiding behind an LLC won't help you any. Who cares? If the tax is not paid the City will put a lien on it and foreclose, as is done routinely, LLC or not.. The question of valuation is an interesting one given that assessed values in NYC are far removed from the market values. And it is not just about raising additional funds. It is about discouraging luxury investor buying in the first place, and hopefully driving away the existing "investors". Hong Kong has 15% tax, Vancouver 1%, London and Paris also have similar taxes, in many countries you can't even buy a property as a foreigner. It's time NYC prioritized New Yorkers over out of state (or country) billionaires.
Nyc can collect every tax they want and most people will find ways to get taxed less.
All the places you mentioned still have luxury real estate, still unaffordable to buy for the majority. And that’s my point, it won’t do anything to make housing more affordable nor will it entice developers to build affordable if they won’t make a profit due to our high labor cost and taxes. This will create a slow down in development aka union construction jobs and real estate commissions.
This tax will do nothing for affordability or pedestrian activity, since it only effects a very very small percentage of housing supply. The biggest factor in rising housing prices are restrictions on new housing construction.
This should result in a short term revenue bump to the city, following by a long term net loss. The City projections are deliberately inaccurate to validate the mayor and comptroller initiative.
This is quite obvious, since these expensive property owners are paying property taxes on crazy high valuations without actually living in the city or using any city services. This is literally chasing away free money for the city.
It is Free money but in people’s minds, they are taking away housing lmao
Which makes no sense giving that most cant afford a 228 million dollar penthouse. And no developers wouldn’t have built affordable housing in its place. And just like Paris, London, Vancouver, Hong Kong...the rich will still folk here tax or not. The only issue is the development will just decrease, aka less money for the city and workers due to developments for the long term. Or another issue is the rich would just rent properties instead of buy, less money in real estate tax (mortgage/transfer/title taxes)
I’m just trying to lower people expectations of this tax, because they are going to be real disappointed when housing is still unaffordable and MTA is still running like crap.
I second this sentiment. How do we still NOT have a pied-a-terre tax is beyond me. The guy who just bought $238m penthouse in which he's gonna spend 5 days a year? Soak him. Next to my building on the UWS they are building a new condo building where 1Br starts at $2m. Who's buying it? Not even "affluent" professionals in the city, no. The 0.01% and foreign corrupt politicians laundering money. They have turned our streets into checking accounts and in the meantime storefronts sit empty and people who ACTUALLY WANT and NEED to live here are priced out and crowded out. Soak them all. If these rich guys decide to leave en mass and park their money in Miami or elsewhere - good riddance. May be young professionals, artists and the middle class will be able to live in the city once again without housing lotteries and couch surfing. Psssst.
The guy who bought the penthouse for $238m probably pays $10,000 a day in taxes to the city without even living in it and you want to chase him away? Meanwhile, who is going to pay for city services?
The guy that you chased away will just buy a similar property in London or Hong Kong, meanwhile you gonna sit in your apartment complaining about heat next winter. But you sure showed him!!!
Quote:
Originally Posted by Wakanda18
I’m just trying to lower people expectations of this tax, because they are going to be real disappointed when housing is still unaffordable and MTA is still running like crap.
Most people are all about rhetoric. To put this in perspective, even if we use city's most optimistic projections, this tax would collect enough $ to fund Charlene's ThinkNYC for ... 3 months. But I am sure urbandweller's life would improve a lot.
The guy who bought the penthouse for $238m probably pays $10,000 a day in taxes to the city without even living in it and you want to chase him away? Meanwhile, who is going to pay for city services?
The guy that you chased away will just buy a similar property in London or Hong Kong, meanwhile you gonna sit in your apartment complaining about heat next winter. But you sure showed him!!!
Yeah I don't understand this. Why is NYC adding an additional tax source? Why not jut raise property taxes? Plus don't these folks already pay property tax on the units they own?
The bonus is they don't live there so the city gets money for nothing.
The guy who bought the penthouse for $238m probably pays $10,000 a day in taxes to the city without even living in it and you want to chase him away? Meanwhile, who is going to pay for city services?
The guy that you chased away will just buy a similar property in London or Hong Kong, meanwhile you gonna sit in your apartment complaining about heat next winter. But you sure showed him!!!
UHm, no he does not. That apartment's assessed value is just 9.4m and that works out to about $500K in annual taxes which is $1,400 per day. So yes, he should pay more. Yes he is not using city services but he is also NOT patronizing local businesses and thus NOT creating jobs and not contributing to the local economy either. And the place is taking up space that could have been used more productively rather than sitting empty.
The guy who bought the penthouse for $238m probably pays $10,000 a day in taxes to the city without even living in it and you want to chase him away? Meanwhile, who is going to pay for city services?
The guy that you chased away will just buy a similar property in London or Hong Kong, meanwhile you gonna sit in your apartment complaining about heat next winter. But you sure showed him!!!
Spare us with the fear mongering. If the guy can pay $238 million and live here a few days a year then this new tax won't bother him.
1. And just like Paris, London, Vancouver, Hong Kong...the rich will still folk here tax or not.
2. The only issue is the development will just decrease, aka less money for the city and workers due to developments for the long term.
Like, literally your second statement is a direct contradiction to your first. If the rich would still "flock here" despite the tax, one would expect no impact on developers or RE agents.
UHm, no he does not. That apartment's assessed value is just 9.4m and that works out to about $500K in annual taxes which is $1,400 per day. So yes, he should pay more. Yes he is not using city services but he is also NOT patronizing local businesses and thus NOT creating jobs and not contributing to the local economy either. And the place is taking up space that could have been used more productively rather than sitting empty.
He is NOT taking up any space, except in your head. The space is all virtual, its literally just air. All the city has to do is raise the FAR limits in select neighborhoods to accommodate these 1% of empty condos, sit back and collect the free $$$. That is it.
Quote:
Originally Posted by pierrepont7731
Spare us with the fear mongering. If the guy can pay $238 million and live here a few days a year then this new tax won't bother him.
The rich didn't become rich by ignoring taxes. Maybe that particular guy will stay, but it will discourage other future buyers/future luxury construction, etc. Also, gov Cuomo disagrees with you, since recently he was whining about the rich people fleeing the state.
Yeah I don't understand this. Why is NYC adding an additional tax source? Why not jut raise property taxes? Plus don't these folks already pay property tax on the units they own?
The bonus is they don't live there so the city gets money for nothing.
I just...can't even.
Nyc property taxes are stupid. There’s been a 2% cap on property taxes due to our taxes being all over the place. Some condos/co ops are paying more taxes than single family homes priced much more or vice versa. You have Upstate and LI paying more in property taxes than a property worth 5 million in the city. I get why it’s that way, but I agree people who put less strain on our resources shouldn’t be pushed out the city. They also provide jobs (house keepers, door man, drivers etc). While paying a lot of taxes
Like, literally your second statement is a direct contradiction to your first. If the rich would still "flock here" despite the tax, one would expect no impact on developers or RE agents.
No, they will come here but rent instead
Or this tax may make developers feel like demand will be less aka less developerment and real estate sales. That’s not a contradiction because the rich can be here without buying more real estate
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