New York bill would tax luxury second homes outside of NYC

Key Points:

• Nearly 20% of homes in parts of the Adirondacks are vacant, leading to concerns about communities becoming seasonal ghost towns, prompting state Sen. Patricia Fahy to propose a tax on luxury second homes and investor-owned properties valued over $5 million.
• Fahy's legislation would allow municipalities statewide to impose an annual tax between 0.5% and 4% on non-primary residences worth $5 million or more, with revenue shared between local governments and the state's Aid and Incentives to Municipalities program.
• The proposal aligns with Gov. Kathy Hochul's revived "pied-à-terre" tax plan for New York City, aiming to generate at least $500 million annually from ultra-wealthy second homeowners to address budget shortfalls.
• Some state leaders, including Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, have expressed openness to discussing the tax, while others, like Sen. James Skoufis, question its effectiveness outside NYC due to fewer ultra-luxury properties.
• Lawmakers such as Sen. Michelle Hinchey support related measures addressing housing affordability and the impact of second homes and short-term rentals, including property tax shifts and rental registries, to support year-round residents.