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Mayor and Governor Propose $500M Tax on Luxury Homes

4/17/2026

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Summary

Story summary

Zohran Mamdani, the mayor, and Governor Kathy Hochul propose a pied-à-terre tax on second homes over $5 million to address a $5.4 billion deficit.
The tax would raise about $500 million annually for city services.
U.S. President Donald Trump and Bill Ackman, hedge fund manager, criticize the plan as driving residents away.
Mamdani and Hochul defend the tax as fair for homeowners who do not reside full-time in the city.

History

Historical Context

In 2013, New York City faced a $1.5 billion budget gap, prompting Mayor Michael Bloomberg to propose a pied-à-terre tax on second homes valued over $5 million, aiming to generate $500 million annually. This initiative reflects ongoing debates about wealth distribution and housing affordability, echoing historical housing crises, such as the one declared by Governor Al Smith in 1920, which spurred significant housing reforms.

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Story summary

Zohran Mamdani, the mayor, and Governor Kathy Hochul propose a pied-à-terre tax on second homes over $5 million to address a $5.4 billion deficit.
The tax would raise about $500 million annually for city services.
U.S. President Donald Trump and Bill Ackman, hedge fund manager, criticize the plan as driving residents away.
Mamdani and Hochul defend the tax as fair for homeowners who do not reside full-time in the city.

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