3 ms·

What's to stop them from selling to a holding company so that it's not literally his own second house?

ceejayoz 5mo ago
https://comptroller.nyc.gov/reports/the-pied-a-terre-tax-and-its-potential-revenues/ https://comptroller.nyc.gov/reports/the-pied-a-terre-tax-and... > It is unclear how DOF will treat properties owned by LLCs and trusts. In general, these owners are not considered residents. However, this does not mean that the properties are not used as primary residences. For instance, based on publicly available information, Mayor Bloomberg established his primary residence in two adjacent buildings on the Upper East Side, one owned by an LLC, and the other a cooperative apartment corporation. It may be possible for some LLC owners to rent to themselves and avoid the tax.
- nonethewiser 5mo ago
  Now remember they are changing how property values are assessed. So everyone's base rises and the rich with 2nd homes dont pay the extra tax because they move it into an LLC.
  - ceejayoz 5mo ago
    > the rich with 2nd homes dont pay the extra tax because they move it into an LLC Sounds like something worth addressing as a second phase!
  - SoftTalker 5mo ago
    LLC pays the tax then. It's still a home that isn't a full-time residence.
  - eli 5mo ago
    They are not changing how property values are assessed for everyone
wisemanwillhear 5mo ago
That's a great point. I'm guessing the politicians knew the rich would find a work around, but they're obligated to go through the outward motions so they can claim to keep their promises.
efsavage 5mo ago
The tax is based on residency, not ownership. If nobody lives there as their primary residence, it's subject to the tax.
- kbelder 5mo ago
  Simple fix, they need to put mistresses in all their second homes.
  - ars 5mo ago
    You joke, but they can partition off a small space, rent it out, and claim they are renting the entire thing to someone. It can be a housekeeper who actually has access to the entire thing. They can also split the property into multiple independently owned properties that just so happen to be right near each other, each just under the limit.
    - efsavage 4mo ago
      If the housekeeper gets to live in a $5m penthouse downtown instead of a walkup with a 60+ minute commute, I'd file this as an unintended win for this policy.

https://comptroller.nyc.gov/reports/the-pied-a-terre-tax-and-its-potential-revenues/ https://comptroller.nyc.gov/reports/the-pied-a-terre-tax-and... > It is unclear how DOF will treat properties owned by LLCs and trusts. In general, these owners are not considered residents. However, this does not mean that the properties are not used as primary residences. For instance, based on publicly available information, Mayor Bloomberg established his primary residence in two adjacent buildings on the Upper East Side, one owned by an LLC, and the other a cooperative apartment corporation. It may be possible for some LLC owners to rent to themselves and avoid the tax.

nonethewiser 5mo ago
Now remember they are changing how property values are assessed. So everyone's base rises and the rich with 2nd homes dont pay the extra tax because they move it into an LLC.
- ceejayoz 5mo ago
  > the rich with 2nd homes dont pay the extra tax because they move it into an LLC Sounds like something worth addressing as a second phase!
- SoftTalker 5mo ago
  LLC pays the tax then. It's still a home that isn't a full-time residence.
- eli 5mo ago
  They are not changing how property values are assessed for everyone

wisemanwillhear 5mo ago

That's a great point. I'm guessing the politicians knew the rich would find a work around, but they're obligated to go through the outward motions so they can claim to keep their promises.

efsavage 5mo ago

The tax is based on residency, not ownership. If nobody lives there as their primary residence, it's subject to the tax.

kbelder 5mo ago
Simple fix, they need to put mistresses in all their second homes.
- ars 5mo ago
  You joke, but they can partition off a small space, rent it out, and claim they are renting the entire thing to someone. It can be a housekeeper who actually has access to the entire thing. They can also split the property into multiple independently owned properties that just so happen to be right near each other, each just under the limit.
  - efsavage 4mo ago
    If the housekeeper gets to live in a $5m penthouse downtown instead of a walkup with a 60+ minute commute, I'd file this as an unintended win for this policy.