Wealthy New Yorkers are ditching city’s high taxes for Miami
Call it fight and flight.
Affluent New Yorkers, financially distressed by recent changes to the nation’s tax laws, are bucking the Big Apple’s high costs and heading for an economic paradise — Florida’s Miami-Dade County area.
The famed resort is luring the disgruntled urbanites with the prospect of a considerable annual tax and cost-of-living savings of between $20,000 and $120,000 for high earners.
One tongue-in-cheek sales campaign for 5,000 residential units and other properties in a tony Miami suburb has even posted the letter of resignation New Yorkers can sign and deliver to family.
“After careful thought and consideration, I’ve officially decided to leave the Big Apple to move to the true apple of my eye: Downtown Doral in Florida,” states the boilerplate letter on the Unhappy New Yorkers website of Downtown Doral.
The federal Tax Cuts and Jobs Act signed into law in late 2017 brought with it sweeping changes that limited deductions on state and local taxes — with taxpayers particularly hard hit in New York, New Jersey and Connecticut, which are among the states with the highest income and property taxes.
According to US Census Bureau data, Florida had the highest number of migrants from other states, with New York contributing the most — 63,722 people during the 12 months ended in July 2018.
Miami-Dade is catching particular interest from dissatisfied New Yorkers. A local executive says New York’s tax woes have been as positive for business as Venezuela’s socialist government, credited for thousands of Venezuelans who have fled to Florida.
“I have never seen such demand like this from New York before,” said Armando Codina, executive chairman of Codina Partners, developer of Downtown Doral.
Codina estimates as many as 1 in 4 of the residential units for sale in his community of 60,000 will be purchased by New Yorkers, expanding the permanent ex-New Yorker population by another 5,000.
The reason is not surprising. A study posted by the Unhappy New Yorkers website calculates savings of nearly $25,000 on an annual income of $100,000 in Dade County compared with New York City, owing to lower taxes and lower cost of living. And that savings translates to a tidy $235,000 on $1 million.