Can a Second-Home Tax Work in New York? The Numbers Don’t Add Up Yet.
The New York Times • • business
Key Points:
- New York Governor Kathy Hochul and Mayor Zohran Mamdani advocate for a pied-à-terre tax on multimillion-dollar second homes to raise $500 million and increase contributions from the ultrawealthy.
- Initial estimates suggested the tax would apply to 13,000 homes valued at $5 million or more, but this figure has been revised pending further analysis.
- The tax’s reliance on assessed property values is problematic, as assessed values in NYC are based on potential rental income rather than market value, leading to significant undervaluation of high-end condos and co-ops.
- Marketproof analysis revealed only three residential properties in NYC have assessed values of $5 million or more, highlighting discrepancies in the valuation method underpinning the tax proposal.
- Confusion and inconsistent information from Governor Hochul’s office have raised questions about the feasibility and accuracy of the pied-à-terre tax plan.
