Trending Now - NY Governor Advocates Tax on Luxury Homes to Address Budget Gap
WHO:
ABC News - Mayor Zohran Mamdani stated, "we are one step closer to balancing our budget by taxing the ultra-wealthy and global elites with a pied-à-terre tax -- the first of its kind in our state."
ABC7 New York - Jim Whelan, president of the Real Estate Board of New York, criticized the proposed tax, stating, "This annual tax will weaken the city's broader economy."
ABC News - New York Governor Kathy Hochul is proposing a new tax on luxury second homes.
ABC News - Mayor Zohran Mamdani supports the proposed tax.
ABC7 New York - Bruce Blakeman is the Republican challenger to Hochul in the upcoming election.
WHAT:
ABC7 New York - The proposed tax is expected to affect roughly 13,000 homes and may involve a sliding scale, with higher rates for homes valued at $15 million and again at $25 million.
ABC7 New York - The tax is projected to raise $500 million annually for New York City.
ABC News - Hochul's proposal includes a tax surcharge on second homes worth over $5 million in New York City.
ABC News - The proposed tax could generate at least $500 million annually.
ABC7 New York - The tax is expected to affect approximately 13,000 homes and may involve a sliding scale for homes valued at $15 million and $25 million.
ABC7 New York - Hochul's support marks a partial reversal of her previous opposition to increased taxes on the wealthy.
WHERE:
ABC News - The proposed tax applies to New York City.
ABC7 New York - The tax targets luxury second homes located in New York City.
WHEN:
ABC News - The proposal was announced on Wednesday, April 12th, 2026.
ABC News - The state budget was due on April 1st, 2026, but negotiations are still ongoing.
WHY:
ABC News - Mayor Mamdani emphasized that the proposed tax is one of the few ways to erase the enormous deficit he inherited, which he initially estimated at around $12 billion but later revised to about $5 billion after savings and financial assistance from the state.
ABC News - The tax aims to help fill a multibillion-dollar budget gap in New York City.
ABC7 New York - Mayor Mamdani emphasizes that raising taxes on the wealthiest is necessary to address the city's serious fiscal crisis.
HOW:
ABC News - Hochul stated, "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."
ABC News - The tax would be implemented as a surcharge on secondary residences valued over $5 million.
ABC7 New York - Hochul stated that those who can afford a $5 million second home should contribute to the city's finances like other residents.
(UPDATED April 16, 2026 01:22 UTC)
Mayor Zohran Mamdani announced that New York City is moving closer to balancing its budget with a proposed pied-à-terre tax aimed at the ultra-wealthy, which he believes is essential for addressing a deficit that has been revised to about $5 billion. The tax is expected to impact around 13,000 homes, featuring a sliding scale that imposes higher rates on properties valued at $15 million and above, with projections estimating an annual revenue of $500 million for the city. In support of the initiative, Governor Hochul remarked that those who can afford a $5 million second home should contribute their fair share, just like every other New Yorker.
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(UPDATED April 15, 2026 21:16 UTC)
New York Governor Kathy Hochul has announced a proposal for a new tax on luxury second homes valued over $5 million in New York City, which could generate at least $500 million annually and affect around 13,000 homes. Mayor Zohran Mamdani supports this initiative, emphasizing the need for the wealthiest to contribute to addressing the city's multibillion-dollar budget gap, marking a shift from Hochul's previous stance against increased taxes on the wealthy. The proposal, revealed on Sunday, aims to implement a surcharge on these high-value properties as negotiations for the state budget continue.