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New York plans to tax away even more jobs and investments

Gov. Kathy Hochul pitched her proposed pied-a-terre tax as a silver bullet for New York City’s budget woes — but instead, it appears to be a tangled gordian knot.

As private job creation slows in a state ranking last for tax competitiveness, New York’s political operatives are sparring over a new tax on luxury second homes instead of focusing on investments and growth.

On Thursday, Hochul unveiled the workings of a tax that she initially said would apply to secondary properties worth more than $5 million.

Now she says that for the first two years, all second homes with a “market value” north of $1 million will be hit by the charge, further compounding its destructive effects.

Under New York’s current labyrinthine property-tax formula, levies on co-ops and condominiums are assessed not on the sale price of a unit, but on a “market value” arrived at by examining what units in buildings of a similar age and size would rent for.

But because comparable buildings might include rent-stabilized units, and adjustments to a unit’s property taxes must be phased in gradually,........

© New York Post