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NYC Mayor Proposes $500M Luxury Home Tax, Sparks Job Fears

4/25/2026

Summary

Mamdani Proposes Tax

Mayor Zohran Mamdani proposed a pied-à-terre tax on homes over $5 million to raise $500 million and narrow New York’s $5.4 billion budget gap.
He singled out CEO Ken Griffin’s $238 million penthouse as a tax target.
COO Gerald Beeson warned the firm may abandon its $6 billion 350 Park Avenue redevelopment, which would create 6,000 and over 15,000 jobs.
Investor Bill Ackman and investor Kevin O’Leary warned the tax could drive jobs out of New York City.

Summary

Citadel Relocates

The 350 Park Avenue project will buy air rights from St. Bartholomew’s Church and St. Patrick’s Cathedral for $150 million to fund upkeep.
Ken Griffin told Fox News in November 2025 his Manhattan home had 25 bullet holes, blamed violent crime, and called New York a “failed city-state” after moving to Miami for safety.
Citadel and Citadel Securities moved to Miami in 2022, citing high taxes and crime as primary reasons.

History

Historical Context

In 1975, New York City faced a $2.3 billion fiscal crisis, prompting Mayor Abe Beame and Governor Hugh Carey to create the Municipal Assistance Corporation. The state injected $1 billion in bonds, while the city raised $500 million through a temporary surcharge on properties exceeding $1 million residential units. Today, Mayor Zohran Mamdani mirrors that approach by targeting Ken Griffin’s $238 million penthouse with a proposed $500 million pied-à-terre tax, echoing past anti-flight measures. If enacted, the levy could pressure firms like Citadel and developers of the $150 million 350 Park Avenue project to relocate, reviving the 1970s exodus pattern.

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Mamdani Proposes Tax

Mayor Zohran Mamdani proposed a pied-à-terre tax on homes over $5 million to raise $500 million and narrow New York’s $5.4 billion budget gap.
He singled out CEO Ken Griffin’s $238 million penthouse as a tax target.
COO Gerald Beeson warned the firm may abandon its $6 billion 350 Park Avenue redevelopment, which would create 6,000 and over 15,000 jobs.
Investor Bill Ackman and investor Kevin O’Leary warned the tax could drive jobs out of New York City.

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