Non resident luxury tax on $5M + properties.

[Anonymous]

Why are people who don’t live in NY weighing in on this?

[Anonymous]

Anonymous wrote:Why are people who don’t live in NY weighing in on this?

Because they own a 5mm+ pied a terre

[Anonymous]

Because it affects non-residents, who don't live in NYC by definition.

[Anonymous]

Because some dips**t posted it in the real estate form, and suggested that Maryland would institute the same policy soon.

[Anonymous]

There are pied-a-terres in Maryland??

[Anonymous]

Because people hate ultra rich parasite people

[Anonymous]

The same parasite people who pay like $8k a month in property taxes and/or common charges to either the city or the building staff despite not using any city resources for most of the year?

[Anonymous]

I am not even sure how they can enforce this. There so many ways to avoid classifying the property as a second home.

[Anonymous]

Anonymous wrote:I am not even sure how they can enforce this. There so many ways to avoid classifying the property as a second home.

I have not followed this closely, but I suspect anyone who does not pay NY city taxes (income taxes) but owns a property over $5 mil would be subject to this new tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am not even sure how they can enforce this. There so many ways to avoid classifying the property as a second home.

I have not followed this closely, but I suspect anyone who does not pay NY city taxes (income taxes) but owns a property over $5 mil would be subject to this new tax.

There is a lot of gamesmanship that can be had. For example, if you place in LLC or Trust and rent the property to yourself, rent the property to your child, etc.. It would no longer be considered a second home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am not even sure how they can enforce this. There so many ways to avoid classifying the property as a second home.

I have not followed this closely, but I suspect anyone who does not pay NY city taxes (income taxes) but owns a property over $5 mil would be subject to this new tax.

There is a lot of gamesmanship that can be had. For example, if you place in LLC or Trust and rent the property to yourself, rent the property to your child, etc.. It would no longer be considered a second home.

Right but perhaps if the property was purchased for $5M or more and is not linked to a tax paying resident, the property will be subject to additional taxes. That would be the better way of doing it and avoid the trust or LLC issue.

[Anonymous]

Anonymous wrote:Because people hate ultra rich parasite people

The poor are the parasites.

[Anonymous]

Anonymous wrote:There are pied-a-terres in Maryland??

It would be hard to find a $5m pied-a-terre in MD. And I can't imagine wealthy people wanting a $5m mansion in MD for occasional use.

[Anonymous]

I can actually see why the tax might make sense but Mamdani was dumb going after Ken Griffin to appease "tax the rich" crown. He didn't bother to check Griffin's charitable activity in NYC. Over past few years Griffin donated:

- $400mm to Sloan Kettering cancer center
- $40mm to Museum of Natural History
- $12mm to NYC Hospital for Special Surgery
- $25mm to NYC success academy charter schools

Additional tax on Griffin's penthouse will be a drop in the ocean in comparison to these numbers. If Griffin decides to reduce his donations, NYC will be worse off.

[Anonymous]

Anonymous wrote:I can actually see why the tax might make sense but Mamdani was dumb going after Ken Griffin to appease "tax the rich" crown. He didn't bother to check Griffin's charitable activity in NYC. Over past few years Griffin donated:

- $400mm to Sloan Kettering cancer center
- $40mm to Museum of Natural History
- $12mm to NYC Hospital for Special Surgery
- $25mm to NYC success academy charter schools

Additional tax on Griffin's penthouse will be a drop in the ocean in comparison to these numbers. If Griffin decides to reduce his donations, NYC will be worse off.

Those donations obviously benefited him or he wouldn’t have made them.

He can afford a modest extra tax