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Mamdani Defends Luxury Home Surtax After Trump Attack

The mayor says the pied-à-terre levy on nonresident properties over $5 million would raise about $500 million a year for city services.

Overview

  • Trump, who posted on Truth Social late Thursday, accused Mayor Zohran Mamdani of “DESTROYING New York” with “TAX, TAX, TAX” policies.
  • Announced Wednesday with Gov. Kathy Hochul, the surcharge would apply to one- to three-family homes, condos, and co-ops worth over $5 million owned by nonresidents, covering about 13,000 units and projected to bring in roughly $500 million each year.
  • Speaking Friday, Mamdani said he and the president both want the city to succeed and argued the measure targets ultrawealthy out-of-city owners who use New York real estate to store wealth rather than live in the homes.
  • As part of his affordability agenda, the mayor is advancing five city-owned groceries run by private operators, starting with a $30 million East Harlem store next to La Marqueta, with first openings expected in 2027.
  • Facing a large budget gap, City Hall is seeking $20 million in private donations to expand childcare and has acknowledged the free-bus pledge will not happen this year due to funding roadblocks.