'We're taxing the rich': NYC Mayor Mamdani touts new $500M-a-year tax on luxury second homes
New York City Mayor Zohran Mamdani celebrated a proposal to tax luxury second homes owned by the ultra-wealthy, a plan expected to generate at least $500 million annually.
Earlier in the day, New York Gov. Kathy Hochul unveiled a pied-à-terre tax on luxury second homes in New York City valued at $5 million or more, allowing the city to impose an annual surcharge on ultra-wealthy nonresidents.
The proposal is projected to generate at least $500 million annually, according to Hochul.
Mamdani praised the plan, noting he campaigned on taxing the wealthy.
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"When I ran for mayor, I said I was going to tax the rich. Well, today, we're taxing the rich," he said in a video posted on X.
He said the tax is designed for the "richest of the rich" — people who "store their wealth in New York City real estate but who don't actually live here."
"This is a fundamentally unfair system that hurts working New Yorkers," Mamdani said. "Now, it's coming to an end."
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He added that revenue from the tax would go toward initiatives such as free childcare, cleaner streets, and safer neighborhoods.
"As mayor, I believe everyone has a role to play in contributing to our city, and some a little bit more than others," he said.
"Happy tax day, New York," Mamdani added.
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According to the governor’s office, the pied-à-terre tax would apply to residential properties in New York City that are not used as a primary residence.
Hochul said the tax would "ensure that those that own luxury homes, but do not live in the City or pay City income tax are still fairly contributing towards the funding of the essential services like policing and parks that make New York City a global destination."
"It is not a tax on residents. That is so important. We're talking about people who are ultrawealthy," she said during a news conference Wednesday.
Hochul added that the proposal would help generate revenue as the city faces budget constraints, without impacting most residents.