Updates & Other Tidbits

NEW YORK TO TAX PIED-À-TERRE HOMES

New York will impose a yearly property tax surcharge on New York City homes worth $5 million or more. An exemption will apply if (i) the home is used as a primary res idence for the owner or for a family member of the owner or (ii) the home is rented out on full-time basis to an individual who uses the unit as a primary residence. The law is scheduled to sunset in 2031, but is likely to be extended.

An introduction to Part HH of the Budget Bill states:

Legislative findings. The residents of New York City and many who do business here contribute daily to the health and vibrancy of the city through their economic activity and the taxes they pay. How ever, many of the city’s most valuable homes are held as second homes, allowing the owners of those homes to reap considerable benefits from the city’s broader economy, from city services, and from a vibrant real estate market. The legislature finds that it is pru dent to impose a surcharge on the owners