DC Lawmakers to Debate Pied-à-Terre Tax on $2.6 Million Homes
Washington, D.C. may become the next jurisdiction to tax high-value second homes. The D.C. Council is considering a pied-à-terre tax on non-primary residences worth more than $2.6 million. It is one of several revenue proposals on the table as the District faces a projected budget gap.
In this Bloomberg Tax article, Hodgson Russ Partner Timothy P. Noonan explains why second-home taxes keep appearing in places like New York City and D.C. He ties the trend to pandemic-era migration. Many taxpayers who moved to states such as Florida stopped paying income tax to the places they left, and second-home levies give those places another way to collect. The article also looks at the legal challenges these taxes have faced in New York and other states.