Mamdani, Hochul team up on second-home tax: What to know

New York Gov. Kathy Hochul (D) and New York City Mayor Zohran Mamdani (D) have proposed a new tax on property owners who have second homes in New York City worth more than $5 million, in an effort to narrow the city’s budget deficit by targeting the ultrawealthy. 

The “pied-à-terre tax” would be an annual surcharge on one- to three-family homes, condominiums and co-ops owned by people who have a primary residence outside New York City. 

The tax would apply to homeowners living outside the state as well as those who live in the state but don’t use their home in the city as a primary residence.

“If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker,” Hochul said in a statement.

New York City’s budget deficit is currently estimated to reach $5.4 billion through the next fiscal year. Hochul and Mamdani’s proposal projects the tax would produce $500 million in additional annual revenue, though an analysis for a similar proposal in 2019 estimated it would generate about $232 million in revenue. 

The 2019 proposal, which was supported by then-Gov. Andrew Cuomo (D) and other New York state........

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