New York Governor Proposing Tax on Second Homes Worth $5 Million or More

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The Proposal in Plain Terms

The policy is known as a “pied-à-terre tax,” aimed specifically at high-value properties that are not primary residences. These are often owned by ultra-wealthy individuals—many of whom live elsewhere—and used occasionally or simply held as investments.

Under Hochul’s plan:

  • The tax would apply to second homes in New York City valued at $5 million or more
  • It would function as an annual surcharge, not a one-time fee
  • It targets non-primary residences, especially those left vacant
  • It could generate around $500 million per year in revenue (Governor Kathy Hochul)

The proposal is designed to help close a major budget gap facing the city while avoiding broader tax increases on income or businesses. (Wall Street Journal)

Hochul framed it bluntly: if someone can afford a multimillion-dollar home that sits empty, they can afford to contribute more to the city that sustains its value. (Governor Kathy Hochul)

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