> It is unclear how DOF will treat properties owned by LLCs and trusts. In general, these owners are not considered residents. However, this does not mean that the properties are not used as primary residences. For instance, based on publicly available information, Mayor Bloomberg established his primary residence in two adjacent buildings on the Upper East Side, one owned by an LLC, and the other a cooperative apartment corporation. It may be possible for some LLC owners to rent to themselves and avoid the tax.
Now remember they are changing how property values are assessed. So everyone's base rises and the rich with 2nd homes dont pay the extra tax because they move it into an LLC.
You joke, but they can partition off a small space, rent it out, and claim they are renting the entire thing to someone. It can be a housekeeper who actually has access to the entire thing.
They can also split the property into multiple independently owned properties that just so happen to be right near each other, each just under the limit.
If the housekeeper gets to live in a $5m penthouse downtown instead of a walkup with a 60+ minute commute, I'd file this as an unintended win for this policy.
That's a great point. I'm guessing the politicians knew the rich would find a work around, but they're obligated to go through the outward motions so they can claim to keep their promises.
> It is unclear how DOF will treat properties owned by LLCs and trusts. In general, these owners are not considered residents. However, this does not mean that the properties are not used as primary residences. For instance, based on publicly available information, Mayor Bloomberg established his primary residence in two adjacent buildings on the Upper East Side, one owned by an LLC, and the other a cooperative apartment corporation. It may be possible for some LLC owners to rent to themselves and avoid the tax.