For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...
A city mansion tax proposal by New York Mayor Bill de Blasio (D) to levy a 2.5 percent surcharge on the sale of residences for more than $2 million would have covered 8 percent of transactions from 2014 through 2016, according to a city budget monitor.
The Feb. 17 analysis by the city Independent Budget Office found that 11,973 of 156,324 residential sales were above the $2 million threshold, with almost 86 percent in Manhattan and 13 percent in Brooklyn. Ten Manhattan neighborhoods accounted for about three-quarters of the high-end sales.
De Blasio has called for the mansion tax, along with a so-called millionaire’s tax on high incomes, in testimony to the state Legislature, which must approve all city taxes. He renewed his call Feb. 13 in his annual State of the City address, saying the mansion tax would raise more than $330 million in annual revenue.
The revenue would be used for rent subsidies for about 25,000 low-income senior citizens.
In the wake of de Blasio’s proposal, the budget monitor said, “some New Yorkers say the $2 million threshold is not indicative of a mansion but rather the cost of a middle-class residence, particularly in Manhattan and parts of Brooklyn.”
The IBO said it looked at apartment and home sales over the last three years to answer questions raised by Manhattan Borough President Gale Brewer (D).
Sales for $500,000 or less accounted for almost 47 percent of all residential transactions, the analysis found.
Other than Manhattan and the Dumbo-Downtown section of Brooklyn, only Forest Hills and Sunnyside in Queens had more than 10 sales above $2 million in 2016. In Manhattan, 11 sections each had 100 or more, with seven having 200 or more.
Leading the neighborhoods were the SoHo-Tribeca-Civic Center-Little Italy section (600 sales), the Upper East Side-Carnegie Hill section (437), the West Village (427) and the Hudson Yards-Chelsea-Flatiron-Union Square section (371).
To contact the reporter on this story: John Herzfeld in New York at email@example.com
To contact the editor responsible for this story: Ryan C. Tuck at firstname.lastname@example.org
The IBO analysis is at http://src.bna.com/mjZ.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)