The report said\u00a0the tax<\/a>, which would place a surcharge on second homes valued at $5 million or more, could yield between $340 million and $380 million, much lower than the\u00a0$500 million goal<\/a>\u00a0set by the governor. The comptroller also found the tax would impact a slightly smaller number of properties than Hochul has estimated: 11,200 instead of 13,000.<\/p>\n \u201cThis report provides a clear-eyed, impartial analysis of the proposed pied-\u00e0-terre tax\u2014what it could raise, where the uncertainties are, and what assumptions must be clarified,\u201d Levine said. \u201cI am committed to working with my partners across the City and State to ensure our budget meets the needs of New Yorkers.\u201d<\/p>\n New York City Mayor Zohran Mamdani has applauded the tax as a\u00a0\u201ctax the rich\u201d measure<\/a>\u00a0that will help the city balance its budget as it faces a budget gap as large as $5.4 billion.<\/p>\n \u201cMayor Mamdani and\u00a0Governor Hochul\u00a0have been clear that this pied-a-terre tax will generate $500 million dollars in revenue annually to help close the city\u2019s inherited budget gap,\u201d Mamdani\u2019s spokesperson,\u00a0Dora Pekec, said. \u201cThe Comptroller\u2019s report makes one thing very clear: thoughtfully crafting and implementing this legislation will do exactly that.\u201d<\/p>\n But Hochul has been light on the details about the tax, leaving questions about how it would be implemented and which properties it would impact and how.<\/p>\n Levine said the tax could still raise the governor\u2019s targeted amount, but cautioned that the outcome becomes less likely when taking into account rented units, behavioral changes after the tax is put in place and other unknown factors.<\/p>\n The governor\u2019s office was also insistent that they\u2019d engineer the tax to result in half a billion: \u201cWhile details of the policy are still being negotiated, the Governor\u2019s proposal will generate at least $500 million for New York City,\u201d\u00a0Jen Goodman, a spokesperson for the governor, said.<\/p>\n The report comes as the state budget is nearly a month past its\u00a0April 1\u00a0deadline, and as city lawmakers formally voted Thursday to delay the mayor\u2019s executive budget proposal.<\/p>\n James Whelan, president of the Real Estate Board of\u00a0New York, which has been staunchly opposed to the tax and lobbied hard against similar taxes in previous years, said that Levine\u2019s report was \u201cyet another confirmation\u201d the tax wouldn\u2019t bring in the expected tax revenue.<\/p>\n \u201cIf implemented haphazardly, this tax would result in less investment, less housing and less revenue for the\u00a0City, State\u00a0and MTA,\u201d Whelan said in a statement.<\/p>\n Photo caption: Mark Levine speaks at Zohran Mamdani\u2019s ceremonial swearing after he too was sworn as city comptroller at\u00a0City Hall on Jan. 1, 2025, in\u00a0Manhattan, New York. (Barry Williams\/New York Daily News\/TNS)<\/p>\n _______<\/p>\n \u00a92026 New York Daily News. Visit\u00a0nydailynews.com<\/a>. Distributed by\u00a0Tribune Content Agency LLC.<\/p>\n Sign in to get access to this free resource, and all of our whitepapers and reports.<\/p>\n \t\t\t\t\t \t\t\tDownload this content today!<\/p>\n Register to get free access to this content, as well as newsletters, continuing education, podcasts, and more\u2026<\/p>\n \n\t\t\t\t\t\t\t![\"](\"https:\/\/www.cpapracticeadvisor.com\/wp-content\/uploads\/CPAPA-Logo.svg\"){kind=logo}
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