The Brief
- Governor Hochul’s FY27 budget proposal would create a new surcharge on luxury second homes in New York City, often called a pied-à-terre tax.
- One-to-three family homes valued above $5 million would face surcharge rates ranging from 0.8% to 1.3%, depending on property value.
- Co-ops and condos would use a temporary assessment system before transitioning to a new valuation method, and the proposal would last five years unless lawmakers renew it.
NEW YORK – New York lawmakers are considering a proposal included in Governor Hochul’s FY27 budget that would create a new surcharge on high-value second homes in New York City, commonly referred to as a pied-à-terre tax.
The proposal targets owners of luxury residential properties who do not use those homes as their primary residence, with state officials arguing the measure would ensure those property owners contribute toward services such as public safety, parks and other city resources.
Under the proposal, one-to-three family homes valued at more than $5 million would face a graduated surcharge based on assessed market value determined through the city’s current property assessment system.…