The new $212 billion state budget raises taxes by about $4 billion, affecting upper income earners as well as corporations based in New York.
One tax that was once rejected, however, was a surcharge on second homes in New York.
The Pied-à-terre tax has long been called for by progressives in Albany as a way to re-capture some of the wealth parked in second homes, mostly in New York City, as a kind of secondary property tax. But enforcement of the tax has been difficult to iron out, while a straight increase in the tax rate for higher income earners considered far easier and less legally risky.
The Pied-à-terre tax's defeat in the budget negotiations was praised by the licensed real estate industry.
“Over the last several weeks, hundreds of real estate brokers from throughout New York City reached out to their local and state representatives - sending a total of 11,736 emails - to speak up against the Pied-à-terre tax," said a statement from the Coalition for Livable Neighborhoods, a coalition created by the coalition to push back aganist the proposal.
During much of the talks, the group had argued the tax would have hurt New York's post-pandemic recovery.
"The PAT tax, which was being considered for inclusion in the New York State Budget, would have had disastrous short- and long-term implications for our industry, as well as many of the homeowners we serve," the group said. "Today, thanks to that grassroots effort, the PAT tax was rejected, issuing an important win to the City of New York, its community of brokers, and its current and future homeowners."
The Democratic-led Assembly on Wednesday night put the finishing touches on the last budget bill for final approval of the spending plan, which was more than a week late.