New York Gov. Kathy Hochul, who has long resisted calls to significantly increase taxes on the state's wealthiest residents, is now proposing a compromise: a new levy on multimillion-dollar second homes in New York City. This move comes after months of pressure from progressive voices, including Mayor Zohran Mamdani, who have advocated for higher taxes on the rich.
The moderate Democrat's plan, announced Wednesday, would empower New York City to impose a tax surcharge on secondary residences valued over $5 million, know as pied-à-terres. The governor′s office estimates this measure could generate at least $500 million annually, a crucial sum as Mamdani seeks to address a multi-billion dollar budget deficit and fund his ambitious policy agenda.
