US state and local governments impose second-home taxes
Updated
Updated · The Wall Street Journal · May 4
US state and local governments impose second-home taxes
2 articles · Updated · The Wall Street Journal · May 4
New York City plans a levy on pieds-à-terre worth $5m or more, Rhode Island starts its vacant-home tax in July, and San Diego voters will decide in June.
Supporters say the measures could raise revenue and push owners to rent out empty homes, while critics warn they may deter wealthy residents, spending and construction.
Courts are weighing similar proposals in Montana and San Francisco, and evidence from Vancouver and France suggests vacancy taxes can reduce empty homes but only modestly ease shortages.
If vacancy taxes succeed in filling homes, how will cities replace the very revenue these policies were designed to generate?
Can cities tax empty luxury homes without punishing families who need a second property for medical care or other reasons?