3 ms·

It's a luxury tax that only affects people wealthy enough to have a second home in NYC. These people, by virtue of not living there, aren't paying income tax an

It's a luxury tax that only affects people wealthy enough to have a second home in NYC. These people, by virtue of not living there, aren't paying income tax and thus don't contribute as much as someone who is.

nonethewiser 4mo ago
>t's a luxury tax that only affects people wealthy enough to have a second home in NYC. Not exclusively though, right? Since they are revising the valuation system to not artificially depress valuations, isnt this a global tax increase? No rate changes or extra tax for someone with a primary residence but the base is increasing, right? >While the tax seems large, experts say the city’s antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said. >Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate.
- eli 4mo ago
  Those are two different things: the new tax, and fixing the broken appraisal process.
  - nonethewiser 4mo ago
    Its part of the same law. Regardless, the appraisal changes are global, right? That is, it would apply to a $200M 17th home and a $750k residence alike, right?
    - eli 4mo ago
      No, there is no global change that I'm aware of.
      - nonethewiser 4mo ago
        Look at the article. It changes appraisals to be comparable sales. Thats how property taxes work in general for NYC. Do you see anything that says this change is scoped to these 2nd homes over 1M? I cant find that specified anywhere - it only mentions the general method.
        eli 4mo ago
        Yes it is proposed for only the new second home tax. It does not currently exist at all.
cstever 4mo ago
some states have homestead exemptions on property tax where your primary residence gets a discount on property taxes (eg Texas); is this effectively the same thing? or is NYC limited to unoccupied second homes instead of those being rented out?

nonethewiser 4mo ago

>t's a luxury tax that only affects people wealthy enough to have a second home in NYC. Not exclusively though, right? Since they are revising the valuation system to not artificially depress valuations, isnt this a global tax increase? No rate changes or extra tax for someone with a primary residence but the base is increasing, right? >While the tax seems large, experts say the city’s antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said. >Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate.

eli 4mo ago
Those are two different things: the new tax, and fixing the broken appraisal process.
- nonethewiser 4mo ago
  Its part of the same law. Regardless, the appraisal changes are global, right? That is, it would apply to a $200M 17th home and a $750k residence alike, right?
  - eli 4mo ago
    No, there is no global change that I'm aware of.
    - nonethewiser 4mo ago
      Look at the article. It changes appraisals to be comparable sales. Thats how property taxes work in general for NYC. Do you see anything that says this change is scoped to these 2nd homes over 1M? I cant find that specified anywhere - it only mentions the general method.
      - eli 4mo ago
        Yes it is proposed for only the new second home tax. It does not currently exist at all.

cstever 4mo ago

some states have homestead exemptions on property tax where your primary residence gets a discount on property taxes (eg Texas); is this effectively the same thing? or is NYC limited to unoccupied second homes instead of those being rented out?