Gov. Hochul reverses position, pushes for tax on NYC second homes worth over $5M to close budget gap
ABC7 New York • • nation
Key Points:
- Governor Kathy Hochul has reversed her initial stance and now supports a yearly tax surcharge on New York City's wealthiest residents to help close the city's multi-billion-dollar budget deficit.
- The proposed pied-à-terre tax would target second homes valued over $5 million, primarily affecting around 13,000 properties, many owned by foreign investors who pay relatively low taxes.
- Mayor Zohran Mamdani emphasized that raising taxes on the ultra-wealthy and corporations is essential to addressing the fiscal crisis, as spending cuts alone will not suffice.
- Real estate groups oppose the tax, warning it could harm the city's economy by reducing construction jobs and lowering property values, while lawmakers hope the tax will generate $500 million annually.
- The Working Families Party welcomed Hochul's support but urged further action to ensure a fair fiscal solution benefiting working New Yorkers.
