Overview
- Assembly leaders confirmed Thursday a 1% levy on New York City home purchases paid in cash for $1 million or more, with an estimated $160 million in revenue.
- The cash-purchase charge would mirror the city’s mortgage-recording tax for deals with loans, and lawmakers are still weighing whether to apply it statewide.
- Governor Kathy Hochul also released a two-phase pied-à-terre plan that would tax non‑primary NYC homes for five years, with higher initial rates for condos and co‑ops.
- For one‑ to three‑family homes assessed above $5 million, the surcharge would run from 0.8% to 1.3%, while condos and co‑ops would owe 4% to 6.5% during a two‑year transition before shifting to the same thresholds once a sales‑based valuation system is built.
- State officials project about $500 million a year from the second‑home tax and say roughly 8,000 to 10,000 properties could be covered, as real‑estate groups warn both measures would slow sales and stall projects.