Inside NYC Real Estate's Plan To Fight The Pied-Á-Terre Tax

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Courtesy of Bess Freedman
Brown Harris Stevens Ceo Bess Freedman Working From Home

In this episode, we speak with Bess Freedman, the CEO of brokerage Brown Harris Stevens, one of a group of major brokerages that have banded together to form what they are calling the Coalition of Livable Neighborhoods to lobby government about certain legislation.

The first issue on their agenda is the proposed pied-à-terre tax, which is set to be introduced in January. The proposal would put a 10% to 13.5% tax on homes that are second residences and have a market value of $5M, according to the bill's sponsor, state Sen. Brad Hoylman.

Freedman said her new group will be making it clear to lawmakers that the tax will drive high-earners out of the city, which will adversely affect the economics of the entire region.

“We’re trying to explain to them that it hurts the everyday person,” Freedman said. “The loss of the pied-à-terre tax buyers means the loss of jobs that support them. Thousands of retail, hospitality and construction and real estate broker jobs, all of that will have an impact, and housing will become more affordable for the rich and not the average New Yorker.”

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