NY mayor seeks 'mansion tax', cap on property-tax break

New York

NEW York Mayor Bill de Blasio plans to call for changes to a state property-tax abatement law that would force housing developers to create more affordable units.

The proposal, which would need approval from the New York Assembly and Senate, would require builders to set aside as much as 30 per cent of a project's apartments for low and moderate-income tenants in order to be eligible for a property-tax exemption, according to an e-mailed statement.

Mr De Blasio, a self-described progressive who ran for mayor in 2013 seeking higher taxes on the wealthy, also will propose a 1 per cent surcharge on the transfer tax in sales of homes over US$1.75 million. The "mansion tax" would impose another 1.5 per cent marginal tax rate on sales proceeds over US$5 million. The city already has gets an additional 1 per cent transfer levy on res…