Overview
- Gov. Kathy Hochul confirmed a plan to add a yearly surcharge on New York City second homes valued at $5 million or more.
- The proposal surfaces during an overdue state budget process and signals a change in her stance on taxing high-end property owners.
- Her budget team estimates the tax would bring in at least $500 million in recurring revenue each year, with rates likely set in value-based tiers through talks with Albany and city officials.
- Mayor Zohran Mamdani praised the plan as a way to help close New York City’s budget gap, and the NYC Democratic Socialists urged broader taxes on the ultra-wealthy.
- The Real Estate Board of New York opposed the idea, arguing it would weaken the city’s economy, lower property values, and raise costs while falling short on revenue.