Mayor Mamdani follows through on plan to tax the rich
The plan would apply to properties worth $5 million or more that are secondary residences. State and city leaders estimate it could generate about $500 million annually, helping address the city's $5.4 billion gap.
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Mayor Zohran Mamdani took to social media to express excitement about a new pied-à-terre tax on the wealthiest population.
Gov. Kathy Hochul proposed the new tax, which would specifically target luxury second homes in New York City. This comes as officials look for ways to close a multibillion-dollar budget gap.
The plan would apply to properties worth $5 million or more that are secondary residences. State and city leaders estimate it could generate about $500 million annually, helping address the city's $5.4 billion gap.
Mamdani, who has pushed a broader "tax the rich" agenda throughout his campaign, called the proposal a step toward fairness.
"It is worthy of celebration… to put forward a proposal that will raise a half-billion every year by taxing the wealthiest of the wealthy," he said.
The tax would not apply to full-time residents or properties that are rented out.
But some disagree with this plan. The Real Estate Board of New York argues it could hurt the city's economy without solving long-term fiscal issues.
The proposal still needs approval as part of the overdue state budget. The exact rate of the tax is still being negotiated.
