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Mansion Tax

mansion tax

(Image credit Beyond My Ken/Wikipedia)

Way back in the last century (1989 to be exact), Governor Cuomo (the first) enacted a tax on residential properties of over $1 million. This 1% tax is imposed on the buyers and known as the “Mansion Tax” or by veterans of the real estate world, the “Cuomo Tax.

” I believe that only thee properties in Brooklyn were subject to the tax in the first six months of the Mansion Tax existence.

Today, the average price on a Manhattan residential sale is over a million and Brooklyn is pretty close to that. Even studio apartments are considered “mansions.”

Mayor De Blasio is attempting to change the Mansion Tax but before you get excited, he doesn’t want to eliminate the $1 million dollar threshold. He wants to increase the 1% rate on properties over $2.5 million! Doubtful that the current Governor Cuomo will agree with anything the mayor proposes.

So for you first-time home buyers, when you price that third floor walk-up, don’t forget it’s considered a mansion and you’ll have a 1% charge looming.

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