Cities around the globe plan new tax on luxury second homes

Some experts say this move can hurt the recovery

November 13, 2014

According to CNN money, lawmakers in Paris, London and New York City are planning new taxes on high-end second-home purchases.

 

However, some analysts say that high-end real estate has been a key component in the housing market’s recovery, and higher taxes could halt growth. In New York, for example, a recently introduced bill would add tax of up to 4 percent a year on properties in New York City with a current market value of more than $5 million, but not apply to primary residences. However, a study from Columbia University on the similar 1 percent mansion tax on home sales above $1 million found that such tax reduces real estate transactions around the million-dollar threshold.

 

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