NY state budget includes a pied-à-terre tax on NYC second homes worth over $5M, projected to raise $500M annually, but no broad income tax hike.
Key Takeaways
Tax applies only to NYC second homes above $5M; Hamptons and other wealthy enclaves are excluded.
Gov. Hochul estimates $500M annual revenue, but the DSA says that covers only ~10% of NYC’s budget deficit.
No income tax increase on wealthy residents; Hochul argues broader hikes risk capital flight to lower-tax states.
Ken Griffin announced Citadel will expand in Miami after Mayor Mamdani posted a video outside Griffin’s $239M penthouse calling it a tax victory.
Budget deal is not finalized; Assembly Speaker Carl Heastie confirmed major financial details remain unresolved.
Hacker News Comment Review
Commenters split on effectiveness: skepticism that the tax will generate projected revenue, free up inventory, or do anything other than halt new construction.
Some support extending similar second-home taxes to other low-inventory markets like California, framing it as a housing supply lever rather than a wealth redistribution tool.
Upzoning low-density Manhattan sections was raised as a prerequisite that the pied-à-terre tax sidesteps entirely.
Notable Comments
@busterarm: argues the tax will miss revenue targets, fail to free inventory, and halt construction simultaneously.
@ch4s3: notes Manhattan’s 4-8 story low-slung sections are the more logical upzoning target before taxing second homes.
