Pied-à-terre tax comes to New York as Mamdani moves to tax rich

Zohran Mamdani and Gov. Kathy Hochul unveiled New York State’s first pied-à-terre tax, a proposed annual surcharge on secondary homes over $5 million that officials say could raise about $500 million a year; similar measures exist in places such as British Columbia, France and Oakland, California.

Zohran Mamdani and Gov. Kathy Hochul announced New York State’s first pied-à-terre tax as part of a push to tax richer residents more. The proposal would add an annual surcharge on one- to three-family homes, condominiums and co-ops valued above $5 million when the owner’s primary residence is outside New York City. The administration said the measure targets out-of-city owners who use New York real estate as a vehicle for wealth storage rather than as homes. Officials projected the tax could generate about $500 million in annual revenue. Known details: - Pied-à-terre is French for "foot on the ground" and refers to a secondary home or residence. - The proposed surcharge would apply to one- to three-family homes, condos and co-ops valued above $5 million when owners have a separate primary residence outside New York City. - City officials said the measure is intended to target out-of-city owners and global residents who hold high-value properties primarily for wealth storage. - The administration projected roughly $500 million in annual revenue from the surcharge. - The article notes similar policies elsewhere, including British Columbia’s vacancy tax, France’s real estate wealth tax (which applies above €1.3 million in taxable net value of French real estate), and Oakland’s 2018 vacant property tax that charges $3,000 to $6,000 annually on very lightly used properties. Summary: The proposal is presented as a way to tax high-value secondary residences and to address fiscal shortfalls by targeting non-primary owners of expensive properties. Similar approaches exist in other jurisdictions, but detailed implementation steps and the next legal or procedural actions for New York were not specified. Undetermined at this time.