Story perspectives

NYC Proposes $500M Pied-à-Terre Tax Targeting Griffin

4/25/2026

Summary

Mamdani Announces Tax

Mayor Zohran Mamdani announced a pied-à-terre tax on non-resident homes over $5 million, targeting billionaire Ken Griffin’s $238 million penthouse at 220 Central Park South.
Governor Kathy Hochul supports the tax, estimating $500 million annually to offset New York City’s $12 billion deficit and fund childcare, street cleaning and safety.
Citadel COO Gerald Beeson warned that the 350 Park Avenue project—6,000 construction jobs, 15,000 jobs, $6 billion spend—may be halted, noting Citadel’s $2.3 billion tax contributions and Griffin’s $650 million charitable gifts.

Summary

Ackman Warns

Legal experts say owners will sue and hire appraisers to contest the tax’s valuation method.
The plan has not clarified whether it will use low assessment values or higher market values.
A 2019 draft proposed a 0.5% levy on properties over $5 million, 1.5% over $10 million, and 4% over $25 million.
Bill Ackman warned the levy could drive wealthy New Yorkers and businesses to Florida, shrinking the tax base.

History

Historical Context

In 1990 Mayor David Dinkins introduced New York City’s first mansion tax—a 1 % levy on homes over $1 million that generated about $200 million its debut year. The tax sits within the 1981 S.7000-A framework that created the city’s four property classes and was revisited in a 2021 advisory commission report and the 2024 Assembly Bill A10600, shaping today’s pied-à-terre proposal.

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Mamdani Announces Tax

Mayor Zohran Mamdani announced a pied-à-terre tax on non-resident homes over $5 million, targeting billionaire Ken Griffin’s $238 million penthouse at 220 Central Park South.
Governor Kathy Hochul supports the tax, estimating $500 million annually to offset New York City’s $12 billion deficit and fund childcare, street cleaning and safety.
Citadel COO Gerald Beeson warned that the 350 Park Avenue project—6,000 construction jobs, 15,000 jobs, $6 billion spend—may be halted, noting Citadel’s $2.3 billion tax contributions and Griffin’s $650 million charitable gifts.

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