Governor proposes second homeowners in NYC to pay extra taxes
Governor Kathy Hochul is floating the idea of a yearly tax on New York City residents who own second homes worth $5 million or more. The annual surcharged would apply to one to three family homes, condominiums and co-ops.
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Governor Kathy Hochul is floating the idea of a yearly tax on New York City residents who own second homes worth $5 million or more. The annual surcharges would apply to one to three family homes, condominiums and co-ops.
Hochul has not revealed what the surcharge would be, but estimates to raise $500 million yearly, that would be put towards closing the city's estimated $5.4 billion deficit.
The governor wrote on social media "if you can afford a multi-million dollar second home in New York City, you can afford to join its residents in supporting the greatest city in the world."
Mayor Mamdani, who has been pushing the Governor to get on board with a 2% wealth tax on millionaires and top earning corporations, says advocacy by his administration has led to this proposal.
In a release from the mayor's office, he says this would help close the city's multi-billion-dollar budget gap and fund essential public services.
“Thanks to the support of Governor Hochul, we are one step closer to balancing our budget by taxing the ultra-wealthy and global elites with a pied-à-terre tax — the first of its kind in our state. Alongside the governor, our administration is fighting every day to make sure we address this fiscal deficit fairly, where the wealthy contribute what they owe and our budget reflects our commitment to the working New Yorkers being priced out of our city,” the mayor wrote in a statement.
City Council Speaker Julie Menin, who was at odds with the mayor over how to close the budget, backed the governor's announcement.
“This is a smart, sensible proposal that will generate significant new revenue to help fund the vital services New Yorkers rely on. Coupled with the Council’s proposals to secure additional revenue from the highest earners — including PTET changes and adjustments to the UBT/PIT credit — this is the comprehensive approach we need to strengthen the City’s fiscal footing and tackle the affordability crisis without burdening working New Yorkers," the speaker wrote in a statement.
The Real Estate Board of New York spoke out against the annual tax, saying it will weaken the city's economy without addressing its fiscal problems in the first place.
"Its impact will reach far beyond a small group of owners. It will not raise the amount of revenue expected, but will eliminate thousands of construction jobs, lower property values and raise costs for New Yorkers. Albany should focus on policies that encourage investment and housing production to create a more affordable city, not ones that stifle its growth," said James Whelan, President of REBNY.
This is not the first-time a pied-à-terre tax has been floated, but the mayor says his will be the first administration to apply it.
