Governor Kathy Hochul is proposing a new tax on certain homeowners in New York State.
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Hochul Wants To New Tax On Luxury Second Homes
NY Governor Hochul Delivers Remarks At MTA Board Meeting
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Governor Kathy Hochul is throwing her support behind a proposed tax targeting ultrawealthy owners of second homes in New York. She’s backing a new tax proposal that would target some of the most expensive second homes in New York City, and it is already stirring debate.
Under the plan, homeowners with luxury properties in New York City valued at $5 million or more could face a new surcharge if their primary residence is outside the city. The idea is aimed squarely at high-end second homes, often owned by wealthy individuals who split time between multiple residences.
State officials estimate the proposal could bring in about $500 million a year. That revenue would go toward helping close a significant budget gap facing New York City.
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New York City Mayor Zohran Mamdani Supports Plan
New York City Mayor Zohran Mamdani has voiced support for the proposal, but he has also been pushing for additional tax increases on high earners and large corporations.
The move comes as the city continues to deal with a multi-billion-dollar shortfall. Supporters of the plan say it is a way to generate revenue from high-value properties that are often under-taxed compared to their market worth.
Hochul Doesn’t Want A Bigger Tax On The Rich
That is where Hochul is drawing a line. While the governor is backing the luxury second-home surcharge, she has pushed back on broader tax hikes targeting income and businesses.
Hochul, who is currently navigating both budget negotiations and a re-election campaign, has recently leaned into policies that appeal to New York City voters, a key part of her political base. The proposal is still in the early stages and would need approval through the state budget process before becoming law.
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