The goal of this isn't simply to raise revenue, it's also to discourage parking money in empty properties when it's one of the most expensive cities to live in and doesn't have enough housing
I'm also wondering what effect it'll have on all the people that have been declaring their primary residence in Florida for tax purposes yet actually live up here in NYC a good amount of the time. My neighborhood in Brooklyn is filled with cars registered in Florida. If all of a sudden your pied-a-terre condo in Williamsburg is getting hit with $40k+/year in property taxes it might no longer make sense to try and move your residence to Florida to avoid city/state income tax.
studies typically conclude that immigrant populations do contribute to housing demand (duh), but the labor supply they bring to services market (e.g. childcare, retail) lowers the cost of those services by a more-than-commensurate amount. so the total cost of living goes down for "natives."
> They are expensive largely because of housing so your statement is a bit of a tautology.
Yes. And that's impossible to fix.
> Historically NYC housing used to be a lot more affordable before they stopped building, reducing supply relative to demand and thereby raising prices.
Demand will _always_ outstrip supply. And there's no such thing as "affordable housing", it's a contradiction like "hot liquid helium". If housing sells, then it's affordable for _somebody_.
What you're talking about is subsidized housing in some form. Like rent control or housing projects.
> And there's no such thing as "affordable housing", it's a contradiction like "hot liquid helium". If housing sells, then it's affordable for _somebody_.
Incorrect. Housing can be sold to a buyer that won't use it for housing. Like the dog protecting the manger full of food it can't eat, affordable housing can be removed from the market by investors, tax vehicles, and so forth.
"While the tax seems large, experts say the city's antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said.
Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate."
this is, at minimum, a 10% increase in ALL property taxes. And the people most affected will be the lower and middle class.
That literally has nothing to do with the pied-a-terre tax. The assessment process is not related to taxing second homes. Each can be done with or without the other.