{"id":223940,"date":"2026-05-07T22:31:24","date_gmt":"2026-05-07T22:31:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/223940\/"},"modified":"2026-05-07T22:31:24","modified_gmt":"2026-05-07T22:31:24","slug":"new-york-city-announces-500m-tax-raid-on-high-value-second-homes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/223940\/","title":{"rendered":"New York City announces $500m tax raid on high-value second homes"},"content":{"rendered":"

New York City<\/a> is set to tax multimillion-dollar second homes as part of a new spending plan that could ensnare Donald Trump.<\/p>\n

On Thursday, Kathy Hochul, the governor of New York State, announced that state officials had reached an agreement on a new budget, which included a so-called \u201cpied-\u00e0-terre tax\u201d championed by the likes of Zohran Mamdani, the city\u2019s mayor.<\/p>\n

It would target high-value second homes and investor-owned apartments worth $5m (\u00a33.8m) and up, Ms Hochul\u2019s office said, though it has not been disclosed how many homes will be subject to the tax or what the rate will be.<\/p>\n

It is projected to generate at least $500m (\u00a3368m) annually, which officials hope can help close New York state\u2019s more than $5bn (\u00a33.8bn) budget deficit.<\/p>\n

New York City is home to more people worth at least $100m (\u00a374m) than any other city in the world, according to data from the London-based consulting firm Henley and Partners. Only San Francisco \u2013 the epicentre of the Silicon Valley tech boom \u2013 has more billionaires.<\/p>\n

\u201cI promised a budget that works for working people and expands opportunities for all New Yorkers and I was not going to back down from that fight,\u201d Ms Hochul said in a statement.<\/p>\n

Mr Mamdani has been a vocal supporter of the new tax. But he faced a backlash from the city\u2019s business leaders after he posted a video last month outside a building where Ken Griffin<\/a>, a billionaire hedge fund manager, owns a penthouse.<\/p>\n

\u201cThis pied-\u00e0-terre tax is specifically designed for the richest of the rich,\u201d Mr Mamdani said in the video, which mentioned Mr Griffin by name and the amount he paid for his penthouse.<\/p>\n

Mr Griffin, however, said the video had put him \u201cin harm\u2019s way\u201d, referring to the high-profile killing of Brian Thompson, the UnitedHealthcare chief executive, in Manhattan in December 2024.<\/p>\n

\u201cHe seems to have forgotten that the CEO of another American company was assassinated just blocks from where I live in New York,\u201d Mr Griffin said of the mayor.<\/p>\n

Mr Trump could reportedly be subject to the new tax. The US president lists his legal residence as his Mar-a-Lago estate in Florida but retains a multimillion-dollar penthouse in Manhattan\u2019s Trump Tower.<\/p>\n

Mr Trump and Mr Mamdani struck up a seemingly friendly relationship after the 34-year-old became the youngest mayor of New York City<\/a> in more than a century at the start of this year.<\/p>\n

\"Donald<\/p>\n

President Donald Trump shakes hands with then-New York City mayor-elect Zohran Mamdani in the Oval Office<\/p>\n

But the president has made his views clear on the new tax.<\/p>\n

\u201cSadly, Mayor Mamdani is DESTROYING New York! It has no chance!\u201d he wrote on his Truth Social account in April.<\/p>\n

\u201cThe TAX, TAX, TAX Policies are SO WRONG. People are fleeing. They must change their ways, AND FAST,\u201d he added.<\/p>\n

The state budget also includes measures designed to push back against immigration enforcement by federal agents, Ms Hochul\u2019s office said.<\/p>\n

Those include forbidding local police from being \u201cdeputised by ICE for federal civil immigration enforcement\u201d.<\/p>\n

A number of US cities have been subject to major immigration operations since Mr Trump returned to the White House.<\/p>\n

Two protesters were shot and killed in Minneapolis as part of a weeks-long operation directed by the Trump administration.<\/p>\n

While New York City hasn\u2019t been the target of the same major immigration operations, federal agents have carried out sweeps in the city<\/a>.<\/p>\n

In October, Immigration and Customs Enforcement<\/a> (ICE) agents conducted raids targeting street vendors on Canal Street in SoHo, which is often lined with stalls selling counterfeit handbags, watches and belts.<\/p>\n

Try full access to The Telegraph free today. Unlock their award-winning website and essential news app, plus useful tools and expert guides for your money, health and holidays.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"New York City is set to tax multimillion-dollar second homes as part of a new spending plan that…\n","protected":false},"author":2,"featured_media":223941,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[153,62240,426,3650,70675,9,24,55,54,49,56,52450,82],"class_list":["post-223940","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-donald-trump","tag-governor-of-new-york-state","tag-kathy-hochul","tag-mayor-of-new-york-city","tag-mr-trump","tag-new-york","tag-new-york-city","tag-new-york-city-headlines","tag-new-york-city-news","tag-new-york-state","tag-ny","tag-york-city","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/223940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=223940"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/223940\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/223941"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=223940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=223940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=223940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}