Credit: Andy on Unsplash
Gov. Kathy Hochul’s proposed pied-à-terre tax could generate up to $500 million annually, but multiple variables could affect the final revenue, according to a report released Thursday by New York City Comptroller Mark Levine. Introduced last month, the governor’s proposed tax, which would place a surcharge on secondary homes in the five boroughs valued at $5 million and above, could generate nearly $500 million from just over 11,200 properties. The comptroller’s analysis examines several factors, including exclusions for rented units and “behavioral responses” to the tax, which could lower the actual revenue to between $340 million and $380 million.
These secondary homes, also known as pieds-à-terre, are typically occupied by part-time residents who stay in the city while working or visiting. Last month, Hochul proposed an annual tax on non-primary residences after resisting calls from progressives, including Mayor Zohran Mamdani, to increase taxes on high-income earners.
In 2017, there were 75,000 pieds-à-terre, according to NYC Housing and Vacancy. The most recent survey by the group, with findings from 2023, found a significant drop off, with 59,000 units, as 6sqft previously reported…