A "Mansion Tax" Is Back On the Table

To help fund the proposed 2017 budget, the city council has revived Mayor Bill de Blasio’s “mansion tax” – 1 percent on apartment buys over $1.75 million, and 1.5 percent on those worth more than $5 million, The Wall Street Journal reports.

A similar proposal was shot down last year by the state Legislature, even though it had the backing of the Real Estate Board of New York and would have raised $200 million for affordable housing in the city.

Considering current apartment prices in New York, the “mansion tax” might be more accurately labelled the “very large studio apartment tax.” Regardless of what you call it, the tax, to be paid by apartment buyers, would raise an estimated $410 million, which the council has earmarked for social programs for immigrants, women and youth. The council is also proposing a new tax on “carried interest,” the method by which many private equity managers are compensated.

Once again, approval by the state Legislature is required – and far from guaranteed.