New York Plans Tax on Homes Over $1 Million Purchased With Cash

Summary

Bloomberg reporter Laura Nahmias discusses a new New York state budget proposal to tax cash purchases of residential real estate in New York City worth $1 million or more. The tax is estimated to raise $161 million annually and would affect 75% of transactions over that threshold. Lawmakers expect it to be included in the budget, though details on the structure and permanence remain under negotiation.

• New York state plans a tax on all cash purchases of NYC residential real estate over $1 million.
• The tax is projected to generate $161 million per year.
• 75% of home purchases over $1 million in NYC would be subject to the tax.
• The proposal is still being negotiated but lawmakers say it will be in the budget.
• Earlier proposed 'pied-à-terre' tax on luxury second homes is also being modified.
• The tax structure for co-ops and condos will change over two years.
• The burden is on NYC to develop a new valuation method for co-ops and condos.