Gov. Kathy Hochul has proposed adding an extra levy on people who own second pricey homes in the Big Apple — as its young socialist mayor calls for more taxes on New York’s highest earners.
The gov has floated imposing a yearly surcharge on second homes in New York City that are worth $5 million and more, dubbed a pied-à-terre tax, aimed at the ultra-wealthy.
“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,” Hochul said in a statement.
It was unclear how much revenue the new levy, which is based on Rhode Island’s model, would generate.
Sources say it would affect roughly 13,000 homes, and the tax, first reported by The New York Times, would bump for homes valued at $15 million and again at $25 million.
The Real Estate Board of New York slammed Hochul’s proposed tax and argued it would put a dent in property values.
“This annual tax will weaken the city’s broader economy — all without addressing its fiscal problems in the first place. Its impact will reach far beyond a small group of owners,” REBNY President James Whelan said in a statement.
“It will not raise the amount of revenue expected, will lower property values and raise costs. Albany should focus on policies that encourage investment and housing production to create a more affordable city, not ones that stifle its growth,” Whelan continued.
The proposal comes as New York State stares down massive federal cuts to Medicaid and Mayor Zohran Mamdani presses Albany for a $5.4 billion bailout that he claims is to fill a massive budget shortfall.
Mamdani has called for sweeping tax increases, including to corporations and households making $1 million or more, among others.
He’s threatened to impose a nearly 10% property tax hike if his demands in Albany are not met.
For her part, Hochul has shied away from raising corporate or income taxes despite support from others in leadership in the statehouse.
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