New York Governor Kathy Hochul has unveiled a bold proposal aimed at closing the state's budget gap and reducing wealth inequality: a tax on second homes in New York City worth $5 million or more. Under the plan, owners of luxury vacation homes and pied-à-terres would be subject to a new tax, which could generate hundreds of millions of dollars in revenue for the state. While details are still emerging, experts suggest that the tax could be imposed as a surcharge on existing property taxes, and would likely apply to homes owned by individuals, not corporations or trusts. As the proposal gains traction, it remains to be seen whether it will face opposition from wealthy homeowners and real estate interests, or whether it will become a key part of the state's budget solution.
Gov. Kathy Hochul wants to tax second homes in New York City that are worth $5 million or more. Here’s how the proposal might work.
