Mamdani backs new tax on NYC second homes as levy on wealthy

[Mayor Mamdani Holds Press Conference To Discuss City-Owned Grocery Store]
Spencer Platt/Getty Images News

New York Mayor Zohran Mamdani praised a proposed annual surcharge on high-value second homes, calling it a key part of his effort to increase taxes on wealthy residents.

“I always said that I believed in the importance of taxing the rich,” Mamdani said in an interview with NBC’s _Meet the Press_ airing Sunday. “This is taxing the rich.”

Mamdani and Governor Kathy Hochul have said they are nearing agreement on a so-called pied-a-terre tax that would apply to second homes in New York City valued above $5 million. The added annual charge would come on top of existing property taxes. Hochul has said roughly 13,000 properties would be affected.

“That is an agreement that we have to tax the wealthy,” Mamdani said, while adding that personal income and corporate taxes remain the “most straightforward” methods of raising more revenue from top earners.

When asked whether he still supports broader tax increases on affluent residents, Mamdani described the second-home levy as “an incredible step” that signals a “different kind of path” as the city faces a projected $5.4 billion budget shortfall over two years.

“I think the final part of this budget process is to ensure that we’re balancing the budget at zero,” he added.

Mamdani has framed the proposal as a way to improve affordability and fund city services, while arguing that owners of expensive part-time residences benefit from New York without contributing enough.

He again pointed to Citadel founder Ken Griffin’s $238 million purchase of a Central Park South penthouse in 2019, which set a U.S. residential sales record at the time.

“This is the kind of real estate activity that’s happening in this city, homes that are largely empty for much of the year, but it all occurs while New Yorkers are hurting in this same city,” Mamdani told NBC.

MORE ON ISHARES NEW YORK MUNI BOND ETF, NUVEEN NEW YORK AMT-FREE QUALITY MUNICIPAL INCOME FUND, ETC.

* NRK: Discount Narrowing And Reliance On ROC Supports Less Bullish Stance (Rating Downgrade) [https://seekingalpha.com/article/4880512-nrk-discount-narrowing-and-reliance-on-roc-supports-less-bullish-stance-rating-downgrade]
* Municipal bond investors need to stay ahead of potential rating downgrades – analyst [https://seekingalpha.com/news/4575880-municipal-bond-investors-need-to-stay-ahead-of-potential-rating-downgrades-analyst]
* Hochul floats tax on NYC second homes valued above $5M [https://seekingalpha.com/news/4575303-hochul-floats-tax-on-nyc-second-homes-valued-above-5m]
* Seeking Alpha’s Quant Rating on iShares New York Muni Bond ETF [https://seekingalpha.com/symbol/NYF/ratings/quant-ratings]
* Dividend scorecard for iShares New York Muni Bond ETF [https://seekingalpha.com/symbol/NYF/dividends/scorecard]