New York Mayor Zohran Mamdani hailed a new state proposal that would tax luxury second homes calling it a victory for “taxing the rich.” According to Fox News, the initiative, unveiled earlier Wednesday by Governor Kathy Hochul, introduces a pied-à-terre tax targeting nonresidents with New York City properties valued at $5 million or more.
Under the plan, owners of expensive second homes who do not live in the city or do not pay city income tax would face a yearly surcharge. Hochul said the measure could bring in at least $500 million annually and help support essential services such as policing and parks while easing city budget pressures.
“It is not a tax on residents. That is so important. We’re talking about people who are ultrawealthy,” the governor emphasized during her press conference.
Mamdani enthusiastically endorsed the proposal, posting a celebratory video on X. “When I ran for mayor, I said I was going to tax the rich. Well, today, we’re taxing the rich,” he said in a trendy video posted on X. He described the tax as aimed squarely at the “richest of the rich”—individuals who “store their wealth in New York City real estate but don’t actually live here.”
Calling the current system “fundamentally unfair,” Mamdani said the surcharge would help New Yorkers. He noted that revenue from the tax could fund priorities such as free childcare, cleaner streets, and safer neighborhoods, according to Fox News.
“As mayor, I believe everyone has a role to play in contributing to our city, and some a little bit more than others,” he said, adding, “Happy tax day, New York.”