Governor Kathy Hochul Plans Two-Phase Tax Hike On NYC Luxury Second Homes To Help Plug Budget Shortfall: Report

Governor Kathy Hochul proposes a two-phase tax on NYC luxury second homes to raise approximately $500 million annually for the city's budget deficit. The first phase would impose a 4-6.5% surcharge on homes with $1 million assessed value, while the second phase would tax homes over $25 million at 1.3%. The proposal has faced significant pushback from investors and wealthy homeowners, with Citadel warning it could reconsider a $6 billion redevelopment project.