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Pied-A-Terre Tax Reconsidered After Billionaire Purchases $238M Home

February 25, 2019 - 6:21 pm
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NEW YORK (WCBS 880) — Democrats in Albany are resurrecting a proposed bill that would impose an additional tax on part-time New Yorkers.

“You can call this a pied-a-terre tax, although that doesn't roll off the tongue so easily, I like to call it an oligarch tax,” said state Sen. Brad Hoylman.

The proposal aims to add a surcharge on second homes worth over $5 million. Hoylman, the main sponsor of the bill, says it’s way to get money out of people who have a home in New York State, but pay nothing in income tax.

The bill, which failed in Albany in 2014, was resurrected after billionaire Ken Griffin, who is worth an estimated $11.7 billion, purchased a record-breaking Central Park penthouse apartment for $238 million.

Hoylman explains: “He would pay an annual tax with our oligarch proposal of $8.9 million a year.”

The tax would impose a 0.5 percent tax on homes between $5 and $6 million. From there, the tax would increase in increments with a maximum tax rate of 4 percent on homes valued over $25 million.

City Comptroller Scott Stringer has predicted that the tax could bring in an estimated $650 million per year.

Some ways to avoid the tax include becoming a New York resident or renting it out to someone who will live in the home full-time.