New York wants to tax the rich. In a surprising shift, Gov. Kathy Hochul is behind a new proposal to tax the ultra wealthy who own multiple homes in the state. The pied-à-terre tax, as proposed by Hochul and Mayor Zohran Mamdani, applies a surcharge to anyone with a second home outside of New Y ork City valued above $5 million. The tax is estimated to generate $500 million annually, according to the mayor’s office. “As Governor, I understand the importance of stabilizing the city’s finances without compromising on essential services New Yorkers count on. 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,” Hochul said in a statement. The pied-à-terre tax is a significant policy proposal for Hochul, who has previously voiced concerns about the best way to fill budget gaps without driving wealthy New Yorkers away. She has also expressed hesitancy when it comes to raising certain taxes. The proposed tax is expected to be part of the next state budget, which lawmakers are months behind in approving. “Thanks to the support of Governor Hochul, 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,” Mamdani said Wednesday. The governor’s announcement received both praise and pushback from across the state. Her Republican challenger, Nassau County Executive Bruce Blakeman, said Hochul has gone back on her promise not to raise taxes. “Whether you’re affluent or middle-class, Hochul and Mamdani are looking to hike your property taxes and take half your house through a new inheritance tax. It’s a war on homeownership and the American Dream,” the gubernatorial candidate said in a statement. In the city, Speaker Julie Menin applauded the proposal: “This is a smart, sensible proposal that will generate significant new revenue to help fund the vital services New Yorkers rely on.” The head of the New York Working Families Party called the tax an “important first step.” “But the wealthiest New Yorkers must still pay their fair share. There is still a gap in revenue to fund the major programs working families need from healthcare to housing. Our work is not done,” Director Jasmine Gripper said. ...read more read less