New York City's mayor-elect Bill de Blasio has already dreamed up a tax hike tax for some Big Apple residents and investors.
The first Democrat to be elected New York City mayor in 20 years has decided to push for tax hikes on vacant land in the city to spur development and build affordable housing, according to Crain's New York Business.
De Blasio's plan, as described by Crain's, would affect about 10,500 city lots, most of which are located in the borough of Staten Island.
Several lots across the city have increased dramatically in value over the past 10 years, but tax rates have not kept up due to zoning classifications and other reasons, the report said.
All vacant lots in the city that are zoned residential are classified the same as single-family homes, which are assessed at 6 percent of their market value. Under the new mayor's plan, the report says, those lots would instead be assessed at 45 percent of the market value after five years.
The plan is designed to force lot owners to develop their space or sell it to an entity that will develop it.
According to the report, "As mayor-elect, Mr. De Blasio is pledging to carry out his idea, which today would affect more than 10,500 lots in the five boroughs, with the largest concentration on Staten Island. The plan, after a five-year phase-in period, would hike yearly rates by an average of $15,300, according to estimates by the Independent Budget Office."
Of course, the plan would also raise revenue for the city. De Blasio estimated the plan would eventually return $162 million annually, which the report said could pay for 4,000 new housing units.
For more details on the new plan and reaction from owners and other players, see the full story at Crain's New York Business