By Josephine Stratman
New York Daily News
(TNS)<\/p>\n
NEW YORK\u00a0\u2014 Gov. Kathy Hochul\u2019s pied-\u00e0-terre tax on expensive secondary residences in the city will bring in at least $500 million a year to city coffers amid Mayor Zohran Mamdani\u2019s full-court press for higher taxes on New York City\u2019s wealthiest residents and corporations, Hochul said Wednesday.<\/p>\n
The tax represents a safe middle ground between Mamdani\u2019s tax-the-rich proposals and Hochul\u2019s more moderate standpoint on taxes. It is expected to affect 13,000 units in the five boroughs that are valued at $5 million or more and are not owner-occupied, the governor said Wednesday.<\/p>\n
That revenue will go toward the Big Apple\u2019s budget, which is currently facing a $5.4 billion gap, per the mayor\u2019s estimates.<\/p>\n
Details, including the rates and whether the surcharge will scale up over time, have yet to be fully hashed out, Hochul said.<\/p>\n
The mayor celebrated the move, claiming it as a victory for his campaign to levy higher taxes on the super-wealthy.<\/p>\n
\u201cSo much of that scholarship, that advocacy, we\u2019re already seeing the fruits of it,\u201d the mayor said at a tax forum Wednesday morning. \u201cJust last night, we saw an announcement that we are working together with the governor to introduce New York City\u2019s first-ever pied-\u00e0-terre tax.\u201d<\/p>\n
Mamdani pointed as an example to\u00a0Citadel\u00a0CEO\u00a0Ken Griffin\u2019s\u00a0$240 million penthouse at\u00a0220 Central Park West\u00a0as an example of the need for this kind of tax: \u201cThis is the kind of wealth that is being stored in the city, and it is a residence that is so often empty.\u201d<\/p>\n
The pied-\u00e0-terre tax is more modest than the hikes Mamdani has advocated for and represents somewhat of a compromise for the mayor and was not among those he\u2019s advocated for in\u00a0Albany.<\/p>\n
The revenue raisers he\u2019s pushed for include a hike for millionaires\u2019 personal income tax rate, a higher corporate tax rate, an increase for the unincorporated business tax rate and a reduction in the city\u2019s Pass-Through Entity Tax Credit.<\/p>\n
Asked Wednesday whether she\u2019d move on the other proposed tax hikes, Hochul voiced opposition to corporate and personal income tax hikes, calling them \u201cnonstarters.\u201d<\/p>\n
\u201cI feel no need to appease anyone,\u201d the governor said when asked if this new tax was a way to placate Mamdani, Sen. Bernie Sanders\u00a0and others advocating for higher taxes. \u201c\u2026 We\u2019re trying to help the city and whittle it down. I\u2019m a partner to this mayor, and so I have found a path.\u201d<\/p>\n
Hochul also emphasized that Mamdani must work with the\u00a0City Council\u00a0to find additional savings to balance the city\u2019s books. The two sides of\u00a0City Hall\u00a0have been locked in a fight over the city budget.<\/p>\n
Speaker Menin, who has not advocated for the same income and corporate tax hikes as Mamdani, applauded the surcharge on secondary homes as a \u201csmart, sensible proposal\u201d in a statement on Wednesday.<\/p>\n
\u201cThis is the comprehensive approach we need to strengthen the City\u2019s fiscal footing and tackle the affordability crisis without burdening working New Yorkers,\u201d Menin said.<\/p>\n
The tax will be included in the state\u2019s budget, which was due\u00a0April 1\u00a0and is now several weeks past its deadline.<\/p>\n
New York\u00a0has tried before to implement such a tax, most recently in 2019. Then the efforts were defeated after heavy lobbying from the real estate industry.<\/p>\n
Photo caption:\u00a0New York City Mayor Zohran Mamdani speaks Jan. 8, 2026, during a press conference on New York City\u2019s universal childcare plan as New York Gov. Kathy Hochul (right) watches.<\/p>\n
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