Democratic New York Governor Kathy Hochul projects that roughly 10,000 New York City properties would be subject to her proposed new pied-à-terre tax on luxury second homes, down from an initial estimate of about 13,000.
Hochul’s office updated the figure after reviewing newer data, having initially relied on older information, a spokesperson told The Wall Street Journal last week. The annual surcharge, tucked into the state’s overdue $268 billion budget, is designed to raise revenue from wealthy out-of-town owners and help plug New York City’s fiscal shortfall without broad-based tax hikes.
What the Pied-à-Terre Tax Would Do
The plan would add an annual surcharge to high-value second homes in New York City, applying to properties worth more than $5 million when the owner lives elsewhere. Rates would rise with property value, typically ranging from about 0.8 percent to 1.3 percent. Co-ops and condos would initially face higher temporary rates under a separate assessment system—around 4 percent or more—before shifting to the lower, graduated structure.
Hochul’s office says the measure would generate around $500 million annually, providing a new revenue stream to bolster city finances…