Policy Issues

Industry Letter on Proposed Tax and Recording of Mezzanine Debt and Preferred Equity Investments

March 23, 2021

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This week, a coalition of 13 organizations including The Real Estate Roundtable, wrote to New York State leadership opposing the companion mezzanine debt tax and preferred equity tax legislation included in Senate and Assembly budget proposals. We believe the enactment of these taxes would exacerbate the affordable housing challenges in New York and effectively increase rents on low to middle-income New York families and small businesses, at a time when they can least bear that increase.

The mezzanine debt and preferred equity tax provisions will impose a $171 million burden on building owners, renting families, and small businesses – just at the time they and the economy will be working toward recovery.

The coalition urged the State’s leadership to reconsider raising costs for those recovering from the pandemic.