Nervous Long Islanders Watch Pied-à-Terre Tax Fight
The battle being waged over New York City’s pied-à-terre tax could have a direct impact on tens of thousands of Long Islanders.
Among the roughly 1 million homes in New York City that could be subject to the tax, Newsday found tens of thousands of individuals connected to property taxpayers on Long Island. That may be an undercount, considering the number of limited liability companies that help shield homeowner identities in the city.
The publication analyzed the properties published by the city’s Department of Finance, comparing it to tax roll records in Nassau and Suffolk counties, as well as political donation records.
Like many either confused or unnerved by the arguably botched rollout of the tax, Long Island residents are asking questions about how the tax will apply to them, or how it can be fought. Some are even reconsidering real estate transactions of their own in the city.
“There are a lot of open questions and issues that a lot of taxpayers are weeding through,” said tax lawyer Cosimo Zavaglia.
Under the law, one-, two- and three-family houses worth between $5 million and $15 million will face an additional annual tax equal to 0.8 percent of market value, maxing out at 1.3 percent for homes worth $25 million or more. For condos and co-ops, the tax begins at 4 percent for a unit worth between $1 million and $3 million, maxing out at 6.5 percent for units worth $5 million or more.
The future of the tax is up in the air as legal challenges mount.
Last week, a state court judge issued a temporary restraining order halting New York City’s pied-à-terre tax rollout, requiring the city to take down a list of 900,000 potentially taxable properties from the Department of Finance website. Legal action, brought by former Deputy Mayor Randy Mastro on behalf of three homeowners, challenged the city’s implementation process and argued that it failed to follow statutory requirements for identifying taxable homes.
The city filed a notice of appeal hours later, triggering a stay on the order and allowing the DOF to continue implementing the law.
A hearing in the case is scheduled for Aug. 31.
Read more
City hits back on judge’s halt of pied-à-terre tax rollout
Housing Notes: Reflecting on the stalled pied-à-terre tax
Policy Pro: Pied-à-terre tax clears court hurdle, Council revives J-51 tax break
