“I believe that in the state of New York, if you have a $5 million second home, then you should be able to afford to pay for police and fire and trash removal and snow removal in the wintertime,” Hochul told local media Tuesday. “Donald Trump ought to focus on all the pain he’s causing New Yorkers and knock it off and don’t worry about us.”
What is New York’s pied-à-terre tax?
In line with Mamdani’s promise to “tax the rich,” New York City implemented a pied-à-terre tax, a yearly levy on high-value residential properties that are not one’s primary residence. Hochul signed the legislation containing it on May 28, and it became effective beginning July 1.
New York authorities say the tax is expected to generate at least $500 million a year in revenue, which would help close the city’s $12 billion budget gap over fiscal years 2026 and 2027.
For two fiscal years starting in July 2026, the levy may apply to one-, two-, and three-family homes valued by the city’s finance department at $5 million or greater, as well as condominium and cooperative units valued at $1 million or more. For covered family homes, the levy rate starts at 0.8% of the market value and goes up to 1.3% for properties exceeding $25 million. As for covered condos and co-ops, the surcharge starts at 4% and reaches up to 6.5% for properties valued at $5 million or more.
Read the full article here
