The measure into consideration by the New York State Legislature would impose a pied-a-terre, or “oligarch,” tax, primarily focusing on part-time residents who aren’t topic to state revenue taxes.
Proposed charges would vary from 10% to 13.5%, to be levied on condos and co-ops with assessed values exceeding $300,000 – or a market worth of about $5 million.
Homes value between $5 million and $6 million can be taxed at a yearly fee of 0.5%, whereas these valued between $6 million and $10 million can be taxed at a fee of 1% plus a payment of $5,000. The fee would steadily improve to 4% plus a $370,000 payment, for these houses valued at greater than $25 million.
The tax was initially launched by Democratic State Sen. Brad Holyman in 2014, however its revival in 2019 was linked to billionaire hedge fund supervisor Ken Griffin’s latest record-breaking buy of a $238 million New York City condo. Griffin is value an estimated $10 billion and is predicted to remain on the pad whereas he’s on the town – which means he isn’t topic to native or state revenue taxes and people monetary advantages are largely misplaced to the town.
Grffiin’s hedge fund, Citadel, has $35 million in property beneath administration.
“I like to call it an oligarch tax because there are foreign owners currently purchasing property in New York City—tens of millions of dollars—not contributing to city services,” Holyman has said of the tax.
Holyman has called the tax a priority for 2021, according to Bloomberg News, which first reported renewed interest in the measure.
A spokesperson for Holyman’s office did not return FOX Business’ request for comment.
Consideration of the measure comes at a time when New York – like many states throughout the U.S. – is reeling from the economic impacts of the coronavirus pandemic.
The tax, however, could be particularly potent since some have left the state amid a growing remote work trend that has allowed people to leave New York.