Sign up here.<\/a><\/p>\n The new tax, which would impose an added annual charge on second homes, condos and co-ops valued at over $5 million if the owner doesn’t list them as their permanent residence, has \u200bfueled debate over a potential exodus of New York City’s mega-rich. Griffin, founder and CEO of Citadel, paid $238 million in 2019 for a penthouse condominium overlooking Manhattan’s Central Park in \u200ba deal that set a record for a U.S. home sale at the time<\/a>.<\/p>\n “You know, Mamdani’s making it really clear: New York doesn’t welcome \u2060success,” Griffin said. “Are these states trying to push away from their populations those who really do believe in the merits of capitalism, the merits of a free society, the importance of \u200beducation?”<\/p>\n When asked about Citadel’s plans for its massive office redevelopment project in Midtown Manhattan, Griffin said the project was “still a point of discussion internally.” Meanwhile, the firm has revised its plans and will \u200bexpand its Miami office, he added.<\/p>\n Citadel’s principals and team members have paid nearly $2.3 billion in city and state taxes over the past five years, Citadel Chief Operating Officer Gerald Beeson said in an internal memo seen by Reuters last month<\/a>.<\/p>\n Others have weighed in with similar concerns.<\/p>\n “If your goal is to make New York City financially solvent, what you don\u2019t want to do is drive out the Ken Griffins of the world,” Bill Ackman, billionaire \u200bCEO of hedge fund Pershing Square Capital, told Bloomberg at the Milken conference on Monday.<\/p>\n Barry Sternlicht, CEO of Starwood Capital Group, said at Milken on Monday that Florida and Texas had been \u200binvesting in improving their infrastructure while states including New York were focused on taxing the rich, which would impact where jobs go.<\/p>\n \u201cMayor Mamdani wants all New Yorkers to succeed,” including Griffin and the city’s entrepreneurs \u200cand business \u2060owners, said Joe Calvello, the mayor’s press secretary, in a written statement.<\/p>\n “That does not negate the fact, however, that our tax system is fundamentally broken,” Calvello said. “If we want this city to become a place that working people can afford, we need meaningful tax reform that includes the wealthiest New Yorkers contributing their fair share.”<\/p>\n LOOMING TAX RAISES VALUATION QUESTIONS<\/p>\n Governor Kathy Hochul said at an April 15 press conference that roughly 13,000 properties would be subject to the tax once imposed, and New York City legislators are currently reviewing the most effective method to value properties so as to \u200breach their $500 million revenue goal, according to a \u200bperson familiar with the matter.<\/p>\n Real estate experts \u2060have raised questions about how the properties will be valued. They are worried the tax could miss large swaths of expensive properties when using the traditional “assessed values” used for tax purposes, which often lag significantly behind actual sale prices, often by 10% to 30%, according to estimates by industry \u200bdata provider Trepp.<\/p>\n “You can have a property that’s sold for $20 million or $30 million, but its tax or assessed value might still be \u200bbelow that $5 million mark,” said \u2060Stephen Buschbom, head of applied research and analytics at Trepp.<\/p>\n There are just under 2,900 properties that could be affected by the new tax when using traditional assessed value, according to Dr. Selma Hepp, chief economist at property data provider Cotality.<\/p>\n But this figure jumps to roughly 11,800 properties when using sale price, or market value, totaling just under $180 billion in market value, said Hepp, who gave the caveat that \u2060many of these \u200bproperties could be rental properties and thus excluded from the tax.<\/p>\n One potential solution for the new tax’s purposes would \u200bbe to create thresholds that would serve as a proxy for market value, said Ben Williams, who leads the property tax department at law firm Rosenberg & Estis.<\/p>\n “The latest iterations (of the proposed tax) have used a $300,000 assessed value as equivalent \u200bto a $5 million market value,” Williams noted, in reference to a proposed 2019 state bill.<\/p>\n Reporting by Matt Tracy; additional reporting by Arasu Kannagi Basil, Editing by Megan Davies, Mark Porter and Anna Driver<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n Purchase Licensing Rights<\/a> Reports on U.S. credit market activity, including corporate debt and credit ratings, U.S. Treasuries, commercial mortgages, and the ongoing public vs. private financing dynamic. He often reports on other topics and events in cooperation with team members across Reuters. Matt previously covered regulatory reviews and investigations into mergers and acquisitions, specifically anti-monopoly, national security, FCC and state-level investigations of some of the biggest deals since 2016. He has broken news on the government investigations into AT&T’s merger with Time Warner, T-Mobile’s purchase of Sprint, Bayer’s merger with Monsanto, and many other multi-billion dollar combinations.<\/p>\n","protected":false},"excerpt":{"rendered":"Griffin criticizes Mamdani targeting him in NYC’s proposed tax on second homesAckman and Sternlicht warn tax could impact…\n","protected":false},"author":2,"featured_media":221613,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[16263,49618,50000,22393,49619,75901,87289,49620,49621,48403,81397,48408,48401,81396,48397,46734,87296,16265,16266,48413,48402,48399,48406,48414,87295,48400,48407,48409,2587,33696,50007,50008,87292,51380,75904,20777,16250,16264,9,24,55,54,87288,56,87293,87290,46725,46747,87294,46726,46745,618,87291,46718,5601,49637],"class_list":["post-221612","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-amers","tag-bact","tag-bisv","tag-biz","tag-cdm","tag-cen","tag-cfin","tag-corpd","tag-dbt","tag-destabn","tag-destd","tag-destdnp","tag-deste","tag-destfun","tag-destg","tag-destlita","tag-destobnk","tag-destocabsm","tag-destousbsm","tag-destpco","tag-destpcu","tag-destpge","tag-destpsc","tag-destrbn","tag-destreuff","tag-destrnp","tag-destu","tag-destucdptest","tag-eco","tag-fed","tag-fin","tag-fins","tag-hyd","tag-insts","tag-int","tag-legal","tag-mce","tag-namer","tag-new-york","tag-new-york-city","tag-new-york-city-headlines","tag-new-york-city-news","tag-nrlpaobnk","tag-ny","tag-orgcha","tag-ream","tag-reuters-legal","tag-topcmb","tag-topicworld-us-florida","tag-topicworld-us-new-york","tag-topnws","tag-us","tag-usafl","tag-usany","tag-usc","tag-uscnyc"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/221612","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=221612"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/221612\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/221613"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=221612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=221612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=221612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Matt](\"https:\/\/www.reuters.com\/resizer\/v2\/https%3A%2F%2Fauthor-service-images-prod-us-east-1.publishing.aws.arc.pub%2Freuters%2F63644b37-5f2a-4fd3-a0ee-b647bd577484.png?auth=5d6d21fd3b59a393f0e8486a4a5c86cc601ab2f8b247a76d5f47d56d943e3232&height=120&width=120&quality=80&smart=true\")
<\/a><\/p>\n