State officials said the measure is designed to ensure owners of luxury homes who do not pay New York City income tax still contribute to municipal services.
BUFFALO, N.Y. — Gov. Kathy Hochul on Wednesday proposed a new pied-à -terre tax on luxury second homes in New York City valued at $5 million or more, aiming to help close New York City’s budget.
The plan aims to generate at least $500 million annually in recurring revenue. It would allow the city to impose a yearly surcharge on ultrawealthy property owners who do not live in New York City full time, according to the governor’s office.
The tax would apply to residential properties in New York City that are not used as a primary residence. Homes would qualify for the surcharge only if they are not the owner’s main residence, are not rented to a primary resident, and are not occupied by the owner’s family.
State officials said the measure is designed to ensure owners of luxury homes who do not pay New York City income tax still contribute to municipal services.
“As governor, I understand the importance of stabilizing the city’s finances without compromising on essential services New Yorkers count on. 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.
Also on Wednesday, Hochul announced that up to $70 million in funding will be used to help protect community organizations at risk of hate crimes and attacks.
The money would go toward security upgrades, such as cameras, alarms, and cyber protection for nonprofits across New York. State leaders said the funding comes as global tensions remain high, and concerns about hate crimes continue here at home.