Rich, so far, keep break on 2nd home

ALBANY — The budget proposal approved by Senate Democrats, while packed with taxes on the wealthy, doesn’t include a longsought tax on high-end second homes or increased levies on billionaires.

Senate Dems shied away from the so-called pied-à-terre tax even though it was included in the Assembly’s fiscal plan as they presented a tax package that could pull in about $8.2 billion over the next year.

State Sen. Brad Hoylman (D-Manhattan) has championed the measure in recent years as a way to crack down on luxury abodes owned by jet-setters.

The senator, who’s running for Manhattan borough president, hasn’t even tweeted about the bill since December, although it is mentioned on his campaign website.

First proposed in 2014, the tax would apply to properties valued at more than $5 million and not the principal residence of the owner. Those apartments would be subject to a rate between 0.5% and 4% that would be applied on the market value above $5 million.

Additional taxes would also apply to condos or co-ops with an assessed value over $300,000. The proposed tax would not apply to homes that are rented out full time or occupied by a child or parent of the owner.

In January, the Independent Budget Office lowered its annual revenue estimate for the levy, saying it would generate $232 million annually, down from the $390 million previously predicted.

Real estate interests have long fought the bill, arguing it could have negative impacts on middle-class homeowners, while progressives made it one of the cornerstones of efforts to raise revenue from the rich.

Hoylman, who did not respond to requests for comment, touted several other measures that made their way into the budget blueprint in a press release, including a program modeled on his “Save Our Storefronts” proposal which will set aside $500 million in commercial rent relief for COVID-impacted small businesses.

Also absent from the budget bill is a proposed tax on billionaires that would target unrealized capital gains that increase in market value. Such a so-called “markto-market” tax would apply the state’s standard top income tax rate of 8.8% to any increase in value.