Editor\u2019s Note: The RISMedia series Legislative Round-Up looks at pending and passed federal and state-level legislation that impacts real estate professionals.<\/p>\n
New York City passes tax on luxury-valued second homes<\/p>\n
New York City has enacted a new tax aimed at luxury second homes. The \u201cpied-\u00e0-terre\u201d (French for \u201cfoot on the ground,\u201d and used in reference to secondary homes) tax is being imposed on second homes valued above $1 million.\u00a0<\/p>\n
There was early backlash to the proposal from the real estate sector (including real estate attorneys<\/a>), with criticism that the tax would discourage buyers affected by the tax from buying.<\/p>\n Melissa Cohn, regional vice president of William Raveis Mortgage, said in a statement she doesn\u2019t believe the tax will have a major long-term impact, even if the rollout is \u201cmessy.\u201d<\/p>\n \u201cIf they want to be in New York, they\u2019re going to be in New York,\u201d Cohn said. \u201cIt\u2019s just going to cost them a little bit more.\u201d<\/p>\n The tax, supported by NYC Mayor Zohran Mamdani and New York Governor Kathy Hochul (both Democrats), will be implemented on a rolling basis per findings by CNBC<\/a>. During the 2026-2027 and 2027-2028 tax years, condos and co-ops valued between $1-$3 million face a 4% annual tax, properties valued between $3-$5 million face a 5.25% annual tax and properties valued over $5 million will see a 6.5% annual tax.\u00a0<\/p>\n Then, from the 2028-2029 tax year on, property values will be assessed based on comparable sales and the pied-\u00e0-terre tax rates will fall. Properties worth between $5-$15 million will be taxed at a 0.8% annual rate, properties between $15-$25 million will be taxed at 1.05% and properties over $25 million will be taxed at 1.3%.\u00a0<\/p>\n Florida puts property tax change on the ballot<\/p>\n This November, Florida will vote on a ballot measure either approving or turning down a proposed overhaul to the state\u2019s property tax system.\u00a0<\/p>\n The Florida state legislature passed an amendment to the state constitution that would create a new $250,000 homestead exemption on property taxes. The voters of Florida themselves now have to approve the measure for the Florida constitution to be amended as such. The measure includes provisions<\/a>, added shortly before passage, to protect funding for public schools.\u00a0<\/p>\n Despite this, local governments in Florida have criticized the proposal. The nonpartisan thinktank The Tax Foundation also claimed<\/a> the constitutional amendment would \u201cshift property tax burdens in highly distortionary ways and make Florida\u2019s tax code far less stable and competitive.\u201d<\/p>\n Republican Florida Governor Ron DeSantis is a strong opponent of property taxes, and has made it clear his goal is to eventually remove them altogether in Florida<\/a>. The Florida Senate statement also described passing the amendment as a \u201chistoric step towards eliminating property taxes for Florida homeowners.\u201d<\/p>\n Pennsylvania pushes for ADUs<\/p>\n Pennsylvania Governor Josh Shapiro, a Democrat who is rumored to be planning a presidential run in 2028, announced a large-scale, ambitious housing agenda in February 2026<\/a>. One piece of that agenda is closer to passage.<\/p>\n The Pennsylvania State House has passed a new bill<\/a> that looks to expand housing in the state through accessory dwelling units (ADUs), or a smaller secondary unit located on the same residential lot as a larger unit. The bill, which now moves onto the Pennsylvania Senate, mandates that municipalities allow at least one ADU per residential lot. Other states, such as Massachusetts<\/a>, have encouraged ADU construction as a way to address housing shortages and\/or unaffordability.<\/p>\n The bill passed by a vote of 139-62<\/a>; all but one Democratic legislator voted in favor of the bill, while Republican legislators were split. During the bill\u2019s passage in committee, Republicans criticized the proposal for overstepping local zoning authority<\/a>.<\/p>\n Maryland passes new fair housing law for tenants with criminal histories<\/p>\n Democrat Maryland Governor Wes Moore signed a handful of housing-related bills into law over the past weeks. One of them, the Fair Chance Housing Act<\/a>, limits the use of background checks in housing application screenings, including specific language that \u201cprohibit(s) housing providers from asking rental applicants about their conviction histories during the initial screening process.\u201d<\/p>\n According to a release from the Maryland State Legislature, about 22% of the state\u2019s population has \u201csome type of criminal legal system involvement,\u201d and this change will ensure wider access to housing.\u00a0<\/p>\n