New York City may propose pied-a-terre tax

Last week, the Fiscal Policy Institute released a report recommending that Mayor Bill de Blasio's administration levy a tax on very expensive pied-a-terres. Under the proposal the city would levy a graduated tax on pied-a-terres worth at least $5 million. The first $5 million in market value would not be subject to the tax, rather the tax would start at 0.5 percent for the first $1 million in value more than $5 million and rise gradually up to 4 percent on non-primary resident owned condos and coops valued at more than $25 million. According to the Fiscal Policy report, this tax could raise $665 million a year for the city.

The proposal would need to be approved by the state Legislature.