Governor Kathy Hochul’s (D-NY) proposed tax on luxury second homes in New York City would be rolled out in two phases as state officials work through the city's complicated property valuation system, according to a New York Times report published Thursday.
The proposal would initially apply to second homes with at least $1 million in assessed "market value," though the actual sales value of those properties could be far higher. Hochul's office said a property with a $1 million assessed market value could translate to roughly a $5 million sales price.
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For the first two years, qualifying second homes would face an additional tax surcharge between 4% and 6.5%. After that, the city and state plan to move toward a different valuation system based more directly on estimated sales prices. In the second phase, homes valued at over $25 million could face a 1.3% tax.
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