NEW YORK, April 15 (Reuters) – New York State Governor Kathy Hochul proposed on Wednesday a new tax on second homes worth over $5 million that was backed by New York Mayor Zohran Mamdani.
Mamdani, a democratic socialist, campaigned on a promise to tax the rich to make the city more affordable for less-wealthy residents, but has generally faced resistance from Hochul, who opposed raising taxes in a year in which she plans to run for re-election.
But in this case, the governor said in a statement on her official website, “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.”
In a press release, Mamdani’s City Hall named wealthy property owners such as Ken Griffin, founder and CEO of Miami-based hedge fund Citadel, who in 2019 paid $238 million for a penthouse condominium overlooking Manhattan’s Central Park in a deal that set a record for a U.S. home sale at the time.
Griffin said the day after Mamdani was elected last year that New Yorkers deserved better policies than Mamdani’s talking points.
Citadel did not immediately respond to a request for comment on the proposed second-home tax.
Countries including France, the United Kingdom and Canada impose taxes on non-primary residences. New York’s is expected, if implemented, to generate $500 million in annual revenue and help close a city budget gap, according to the City Hall statement.
The statement did not put a figure on a proposed annual surcharge.
“The measure targets ultrawealthy out-of-city residents and global elites who use New York City real estate as a vehicle for wealth storage rather than as homes,” City Hall said.
(Reporting by Maria Tsvetkova; editing by Donna Bryson and Nia Williams)
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