NYC Mayor Zohran Mamdani announced plans to introduce a pied-à-terre tax on luxury secondary homes valued at over $5 million, targeting wealthy Americans who own these properties without living in the city full-time.
The tax, an annual fee, aims to raise at least $500 million for the city, which will be invested in developmental infrastructure projects, universal free early childcare services, free bus rides, cleaner streets, and safer neighborhoods.
The proposal, expected to be part of the state budget negotiations, targets 'out-of-city residents and global elites' who use the city's high-value real estate market as a store of wealth rather than as homes.
New York State Governor Kathy Hochul has expressed support for the measure, stating that those who can afford a $5 million second home can afford to contribute like every other New Yorker.
