A new tax proposal being evaluated by Mayor de Blasio is a property tax surcharge on pied-a-terre residences valued at more than $5million owned by buyers from across the country and around the world.
The tax of up to 4% a year would apply to all apartments and homes with a current market value of more than $5 million, and would exempt the primary residences of New Yorkers.
People who have a primary residence in the city would still have to pay the higher tax if they own a second home valued at more than $5 million.
The proposal would impose the tax surcharge for homes valued at more than $5 million with a .5% surcharge which would rise gradually to 4% for home values above $25 million.
Though New York must follow complex rules in making regular property assessment, that keeps many tax bills low, the legislation would base the surcharge on an estimate of the current value of each apartment based on comparable sales.
This proposal has strong opposition from the real estate industry and at this point is nothing more than a draft.