Thursday, May 1, 2014

De Blasio pushes ‘mansion tax’ to fund affordable housing


After his failed attempt to hike income taxes on the wealthy, Mayor de Blasio is eyeing another way to squeeze money from millionaires to fund another top priority: affordable housing.


Multiple sources tell The Post that the mayor is talking to people about how to increase the so-called “mansion tax” on homes selling for $ 1 million or more to help offset the cost of adding 200,000 affordable-housing units.


However, boosting the mansion tax would require Albany’s approval, and sources say that could be a major hurdle for de Blasio because Gov. Cuomo smacked down his income-tax-hike idea earlier this year.


The state mansion tax already exists statewide and levies a 1 percent fee on residential property sold for at least $ 1 million. In the 2012-13 fiscal year, it generated a record-busting $ 259 million. While it covers the entire state, The tax hits hardest in Manhattan, where seven-figure prices are common even for modest-sized co-ops and condos.


Sources said an expanded mansion tax, which would be progressive based on the sale price of a property, could generate $ 150 million for the city.


City Hall declined to comment.





Yahoo Local News – New York Post




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