Additional Coverage:
- NYC Mayor Mamdani knocked Ken Griffin in pied-a-terre tax promo. His firm calls the move ‘shameful’ (cnbc.com)
Citadel Pushes Back Against NYC Mayor’s Proposed Pied-à-Terre Tax Targeting Ken Griffin
New York City Mayor Zohran Mamdani recently sparked controversy by unveiling a new pied-à-terre tax aimed at wealthy non-resident homeowners with expensive properties in the city. The announcement came in a social media video filmed outside billionaire Ken Griffin’s residence at 220 Central Park South, coinciding with tax day. The proposed tax would impose an annual surcharge on one- to three-family homes, condos, and co-ops valued above $5 million when the owner’s primary residence is outside New York City.
Citadel, the financial firm founded by Griffin, swiftly condemned the mayor’s move. In an internal memo obtained by CNBC, Citadel’s Chief Operating Officer Gerald Beeson criticized Mamdani for singling out Griffin, calling it “ignorance and disdain” toward individuals and companies that contribute significantly to the city’s economy.
“It is shameful that he used Ken’s name as an example of those supposedly not carrying their fair share of New York City’s often costly and wasteful spending,” Beeson wrote. He further emphasized that this stance reflects a broader disconnect between the political elite and those who have helped build New York into a global powerhouse.
Beeson highlighted that Citadel principals and employees, including many who live outside the city, have paid nearly $2.3 billion in New York state and city taxes over the last five years. He also pointed to the company’s ambitious redevelopment project at 350 Park Avenue, which is expected to create approximately 6,000 construction jobs and more than 15,000 permanent positions, with an investment exceeding $6 billion.
While Griffin relocated Citadel’s headquarters from Chicago to Miami in 2022 and made Florida his primary residence, Citadel remains deeply connected to New York. Nearly 200 employees serve on boards of local charitable organizations, and Griffin himself has contributed around $650 million in philanthropic donations to the city.
“We understand that our success can make us targets for political rhetoric, but it should not diminish our pride in building firms that will help New York City thrive for decades,” Beeson concluded.
The story of this dispute first surfaced in the Wall Street Journal earlier on Thursday, highlighting the growing debate over how New York should tax its wealthiest non-resident property owners.