Realtor: ‘Mansion tax’ hurting real estate market, local economyPosted: Updated:
A realtor says that the so-called “mansion tax” could be hurting the real estate market as well as the local economy.
According to New York state tax law, a home is considered a mansion if it's priced at or more than $1 million. If it’s over that price, the state can hit someone with a 1 percent property tax known as the "mansion tax."
In Westchester, one in four homes is worth more than $1 million.
Few places in Westchester feel the pain of the mansion tax as much as homeowners in Scarsdale. A total of 87 percent of all single-family homes in the village are worth more than a $1 million. The only other place in the county with this kind of per capita real estate market is Rye.
J. Philip Faranda, a realtor with three offices in the county, says the mansion tax is hurting the real estate market as well as Westchester's overall economy.
“If you're competing with Connecticut or New Jersey, then it absolutely sends people away from Westchester County,” he says.
The mansion tax does generate more than $400 million for the state. Some say increasing the minimum to $2 million would mean less money overall for social services.
Lawmakers in favor of the increase say the state can find other ways to make up the difference.