Mamdani hails gubernatorial backing for tax on wealthy absentee homeowners

NEW YORK, United States (MNTV) – Mayor Zohran Mamdani welcomed Governor Kathy Hochul’s proposal for a pied-à-terre tax on expensive second homes as a step toward addressing the city’s budget shortfall, calling it “the first of its kind in our state” and a sign that progress on taxing the ultra-wealthy is within reach.

The tax would place an annual surcharge on homes valued above $5 million when the owner does not primarily reside in New York City. Hochul’s office estimates it would generate around $500 million in revenue annually.

“If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker,” Hochul said.

Mamdani, who campaigned on taxing the wealthy to fund free buses, universal childcare and city-run grocery stores, said: “We are one step closer to balancing our budget by taxing the ultra-wealthy and global elites.”

He has already secured early wins alongside Hochul, including $1.2 billion in state funding for expanded childcare and plans for the city’s first publicly owned grocery store, set to open in 2027.

However, Hochul — a moderate Democrat running for re-election in November — drew a clear line on Wednesday, telling reporters she would not entertain income tax or corporate tax increases that Mamdani has advocated.

“I’m appeasing no one,” she said, including Mamdani and Senator Bernie Sanders.

Republican challenger Bruce Blakeman accused her of breaking a no-new-taxes pledge.

A 2023 city housing survey found nearly 59,000 units held for “seasonal, recreational or occasional use,” though it did not specify how many were valued above $5 million. The tax would need to pass in the state’s delayed budget to take effect.