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NY Proposes $5M Pied-à-Terre Tax, Aims $500M

5/1/2026

Summary

Hochul Proposes Tax

Governor Kathy Hochul and Mayor Zohran Mamdani proposed a $5 million pied-à-terre tax to raise $500 million.
Comptroller Mark Levine projected $340-$380 million revenue, affecting about 11,200 properties.
Senator Pat Fahy suggested towns adopt the tax and split locally and to a state fund.
President Jim Whelan warned the tax could cut investment, housing and revenue.
Critics note LLC loopholes that let owners like former Mayor Michael Bloomberg avoid the tax.

Summary

Fahy Urges Expansion

The tax would cover about 13,000 NYC properties worth $5 million or more, higher than earlier estimates.
State Senator Patricia Fahy urged a statewide expansion, saying secondary-home growth strains upstate housing markets.
Montana imposes a 1.9 % tax on second homes, short-term rentals and vacant lots, a model New York cites.
Advocates warn that a surge in luxury second homes upstate could pressure municipal budgets and cut housing supply.

Summary

Levine Warns Tax

Comptroller Mark Levine’s audit projects $340-$380 million in revenue, roughly $100 million below the $500 million target.
The proposed tax would apply to about 13,000 secondary homes valued at $5 million or more, for which rules on tenant-rented properties, trusts, LLCs, or family owners are undefined.
Levine warns that, as in Vancouver where nearly 60 % of owners sold by 2025, New York could lose about 10 % of projected revenue if a similar sell-off occurs.

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Hochul Proposes Tax

Governor Kathy Hochul and Mayor Zohran Mamdani proposed a $5 million pied-à-terre tax to raise $500 million.
Comptroller Mark Levine projected $340-$380 million revenue, affecting about 11,200 properties.
Senator Pat Fahy suggested towns adopt the tax and split locally and to a state fund.
President Jim Whelan warned the tax could cut investment, housing and revenue.
Critics note LLC loopholes that let owners like former Mayor Michael Bloomberg avoid the tax.

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