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Revenue would be split between localities and the state\u2019s Aid and Incentives to Municipalities funding, New York\u2019s main funding stream to support local essential services. Half of the new funding would stay with the municipality and the other would go to the state to support local governments outside of New York City.\u00a0<\/p>\n
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Fahy\u2019s bill would apply a tax to residential homes that are not the primary residence of the owner or\u00a0a family member, are not rented as someone else\u2019s primary residence, and have a five-year average property value of $5 million.\u00a0<\/p>\n
The owner must have their primary residence outside the municipality where the property is located. Municipalities can impose an annual tax between 0.5% and 4% of the property\u2019s average value, including graduated rates.\u00a0<\/p>\n
\u201cCities, towns, and villages outside of New York City have seen AIM funding remain largely unchanged in the last decade or more, even as local governments face rising costs and an exodus of young people and families who have been priced out of the communities they grew up in,\u201d Fahy said. \u201cFor too long, these properties have contributed to a hollowing out of communities Upstate, in Long Island, the Adirondacks, Finger Lakes, and across New York State, in some instances, by turning them into part-time ghost towns.\u201d<\/p>\n
When asked about the proposal earlier this week, Senate Majority Leader Andrea Stewart-Cousins said that she had yet to speak to members of her party. \u201cBut for me personally, I think it\u2019s worth more conversation,\u201d she said.\u00a0<\/p>\n
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Assembly Speaker Carl E. Heastie also had not spoken to members of his chamber about the tax, but appeared warm to the idea.\u00a0<\/p>\n
\u201cMe, personally, I would be open to other places looking at the pied-\u00e0-terre tax,\u201d he said. (The term is French for \u201cfoothold,\u201d and is a real estate term for an apartment or other small property owned as a second residence.)<\/p>\n
State Sen. Michelle Hinchey, who represents a large portion of the Hudson Valley and Catskills region, told the Times Union earlier this month that she supports efforts to address the impact of luxury second homes and short-term rentals in New York City.\u00a0<\/p>\n
Hinchey described how an influx of wealthier buyers during and after the pandemic drove up housing prices in the Hudson Valley, with homes often selling sight unseen and far above asking price, pricing out young families, workers and seniors.\u00a0\u00a0<\/p>\n
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She said that many homes have been converted into vacation rentals or part-time residences, reducing the supply of the housing for full-time residents and making it harder for local businesses to find workers.\u00a0<\/p>\n
While she stopped short of endorsing a statewide\u00a0pied-\u00e0-terre\u00a0tax, she said lawmakers are exploring \u201cnot dissimilar\u201d policies to ease affordability pressures and support year-round communities.<\/p>\n
Hinchey pointed to steps she has already supported, including a statewide short-term rental registry law and a new Ulster County bill she is carrying that would shift some property tax burden from full-time residents onto second homeowners and rental properties, giving permanent residents about a 10% property tax break.\u00a0<\/p>\n
State Sen. James Skoufis, who represents a significant portion of Orange County, acknowledged concerns about budget pressures in upstate and the Hudson Valley. However, he said that a statewide\u00a0pied-\u00e0-terre\u00a0tax may not translate well outside New York City because few municipalities have enough ultra-luxury properties to generate meaningful revenue.\u00a0<\/p>\n
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\u201cYou\u2019ll find a very small handful here or there, but nothing that if there was some tax imposed could close a meaningful budget gap in an upstate municipality,\u201d Skoufis said in an interview earlier this month.\u00a0<\/p>\n
Instead, he said each locality will likely need different fiscal solutions, including direct state aid or local revenue measures, such as those proposed in the Senate\u2019s budget proposal.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"State Sen. Patricia Fahy, center, listens to testimony from Albany Mayor Dorcy Applyrs, left, during a budget hearing…\n","protected":false},"author":2,"featured_media":216563,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[98,100,99,609,844,9,24,63,530],"class_list":["post-216562","post","type-post","status-publish","format-standard","has-post-thumbnail","category-brooklyn","tag-brooklyn","tag-brooklyn-headlines","tag-brooklyn-news","tag-government","tag-latestnews","tag-new-york","tag-new-york-city","tag-nyc","tag-state"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/216562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=216562"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/216562\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/216563"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=216562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=216562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=216562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}