The second home tax proposed by New York Mayor Zohran Mamdani has been blocked by a Staten Island judge. The city administration will now have to work hard in court to defend a sort of symbol of Mamdani’s new policies, who promised “a more accessible city for all citizens.”
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The so-called pied-à-terre tax, which targets valuable second homes that are not rented out and only occasionally inhabited, has been welcomed by the mayor’s supporters. But it must overcome political opposition and legal resistance from conservatives, who argue that the tax is ideological and will end up forcing wealthy New Yorkers to leave the city.
Which homes are subject to the tax
The tax, desired by Mamdani (and introduced by a law signed by Governor Kathy Hochul, who has fiscal authority) concerns single-family homes valued at $5 million or more and apartments valued at $1 million or more. It is calculated with a progressive rate starting at 4% of the property’s value.
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According to the administration’s forecasts, it should provide the city with revenues of at least $500 million per year, increasing resources and the maneuvering room of a budget in deficit by over $5 billion. So much so that to celebrate its launch, in early July, Mamdani – a democratic socialist, as well as Muslim and son of immigrants – posted a video on social media filmed in front of a building where Kenneth C. Griffin, billionaire financier, bought a penthouse for $238 million in 2019.
The appeal against the city administration’s estimates
The appeal filed by three homeowners has so far stopped everything. State Judge Wayne Ozzi suspended the application of the tax, prohibiting any further action by the city council, pending developments in the legal proceedings (for which the next hearing has been set for August 31).
