A New York Democratic leader is proposing a new tax targeting the ultrawealthy who largely live outside the city limits, but it might not be the one you’re thinking of.

Governor Kathy Hochul has put forward plans for a pied-à-terre tax, a surcharge on expensive secondary homes largely owned by moneyed owners who live outside the five boroughs, as a way to generate revenue and bridge the city’s serious budget shortfall. Though the governor said the final rates are still being discussed, she anticipates that the surcharge would impact about 13,000 units worth at least $5 million within the city that are regularly unoccupied. Hochul said the tax would not apply to units where the owner either lives full-time or rents the property to a full-time tenant. It is expected to generate at least $500 million in revenue for the city.

“This is a targeted surcharge on second homes and investor-owned apartments worth over $5 million, homes that, in many cases, sit vacant........

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