Markets & EconomyTechnology

‘Mansion tax’ endorsed by NYC real estate board

Some prominent real estate execs worry that proposed tax could curtail home sales

A proposed "mansion tax" on New York City home sales has gained the backing of the Real Estate Board of New York (REBNY), even though some prominent real estate brokers worry that it could do more harm than good, The Wall Street Journal reports. The proposal, part of a larger plan to boost affordable housing, would institute a 1 percent tax on the sale of one- to three-family homes, co-ops and condominiums worth more than $1.75 million, and a 1.5 percent tax for properties of the same groups that sell for more than $5 million. Revenues generated by the tax would go toward the construction or preservation of affordable housing. The tax would affect 10 percent of residential sales in New York City, according to Mayor Bill de Blasio's office. REBNY, whose membership includes property developers, owners and real estate agents, did not respond to a request for comment on the tax. But Steven Spinola, president of REBNY, told WSJ that, even though the tax "is not wh...