New York Takes Two-Step Approach on Multimillion-Dollar Second-Home Tax (Gift Article)
A new tax surcharge on the second homes of wealthy part-time residents of New York City would initially target co-ops and condos that have at least $1 million in “market value,” a bureaucratic metric that often vastly understates a home’s actual worth.
The proposed second-home tax plan, which Gov. Kathy Hochul proposed to state legislative leaders on Thursday, would be instituted in two phases. For the next two years, second homes with a “market value” of $1 million or more will face a tax surcharge between 4 percent and 6.5 percent — in addition to their existing property tax obligations.
But because the so-called market value diverges from a property’s actual sales value, especially at the highest end of the market, it is unclear how many homes would be affected by the tax.