A New Tax For New York’s Commercial Real Estate Industry?

A New Tax For New York’s Commercial Real Estate Industry?

New York commercial real estate doesn't need another new tax.



RANJAN SAMARAKONE

New York City and State have traditionally treated the real estate industry as a cash cow without end, in part because they think it's a cash cow that can't move. The State legislators may be about to do it again, thanks to a proposal to expand the scope of New York's tax of 2.8% on substantial mortgages recorded in New York City. That's one of the highest mortgage tax rates in the United States.

Now some State legislators want to extend the same 2.8% tax to mezzanine loans and preferred equity investments, two structures that often provide additional capital for larger projects, especially new development. This change would come on