Two Brooklyn legislators have proposed a “flip tax” that would increase transfer taxes on certain residential properties that are resold within two years of being purchased. Assemblymember Erik Dilan and State Senator Jesse Hamilton have introduced identical bills in committees in the Assembly and Senate, touting the tax as a measure that would discourage the type of flipping they say reduces affordability in the housing stock.
The bill would make flipping less profitable by increasing the city transfer taxes by 15 percent for one-to-five-family properties resold within a year of being purchased, and 10 percent if sold within two years. It would exclude some transactions, like properties sold to a family member or homeowners with financial hardship, in order to target professional flippers.
The proposal was first floated by housing advocates during the East New York rezoning process, one of the areas that saw the largest increase in flipping activity in 2015, according to a report by the Center for NYC Neighborhoods, which looked at single-to-four-family homes. Read more at The Real Deal.