Billionaire investor Bill Ackman is pushing back on New York City’s pied-à-terre tax, arguing the levy will backfire by shrinking property values and tax revenue rather than boosting city coffers.
Cap Rate Math Points to Steep Value Losses
In an X post on Saturday, the Pershing Square Capital Management CEO argued that a taxed home’s value will decline in proportion to the capitalized cost of the new levy.
Ackman noted the 5% surcharge on assessed property value equals roughly 0.3% to 0.75% of a home’s market value. Based on a 4% capitalization rate, he estimated that property values across the city, along with related tax revenue, could fall by 7.5% to 18.75%.
Ackman has been a vocal critic of the proposal from the beginning, warning that the policy could create unintended consequences for New York’s housing market and long-term tax base.
