Hochul’s Pied-à-Terre Tax: One More Bad Option to Close NYC Budget Gap

There seem to be no good weapons left in New York’s arsenal for bridging the significant budget gap facing its largest city. Governor Hochul’s latest push—a new annual “pied-à-terre” taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. surcharge on second homes in New York City valued at over $5 million—once again misses the mark.

As a city already saddled with some of the nation’s highest combined tax burdens, NYC cannot afford policies that accelerate out-migration, deter investment, and stifle growth.

This proposal comes after Mayor Zohran Mamdani identified a $12 billion two-year deficit facing New York City. Mayor Mamdani initially proposed steep income tax hikes on the wealthy and corporations to bridge this gap.