New York Gov. Kathy Hochul is expected to propose a tax on second homes in New York City that are worth more than $5 million, sources told CBS News New York.
The governor hopes to raise at least $500 million annually for the city, sources told CBS News New York's Marcia Kramer. The pied-à-terre tax is the proposed surcharge on high-value properties and targets non-residents.
This proposal is going to be negotiated in the budget. Government officials are still working out the details, including deciding if people will pay the tax on a sliding scale based on the value of their second home, sources said.
"If you can afford a multi-million dollar second home in New York City, you can afford to join its residents in supporting the greatest city in the world," Hochul said on X.
Mamdani has frequently called on the state to "tax the rich." He said this is the only way to make up for the city's $5.3 billion budget gap.
"We will be taxing the ultra-wealthy and global elites," he posted on social media Wednesday.
Mamdani previously said personal income taxes on residents earning at least $1 million per year need to be increased.
Hochul's $260 billion state budget proposal didn't include any broad-based income tax raises. She said it was designed to improve affordability without raising taxes.
Bruce Blakeman, a Long Island politician running against Hochul for governor, slammed the idea.
"Kathy Hochul's 'No Tax Hike' promise has expired faster than the families fleeing New York's affordability crisis. Whether you're affluent or middle-class, Hochul and Mamdani are looking to hike your property taxes and take half your house through a new inheritance tax," he said in a statement. "It's a war on homeownership and the American Dream. Unlike Hochul, I'll actually keep my word when I'm governor: I'll cut your taxes, slash your utility bills in half, and protect the American Dream."
The Republican nominee has repeatedly sounded off on Hochul and New York City Mayor Zohran Mamdani regarding affordability in the state.
"It's no longer affordable to live in New York, and now, under what they proposed, it won't even be affordable to die in New York," Blakeman previously said.
New York City Council Speaker Julie Menin called it a "smart, sensible proposal that will generate significant new revenue to help fund the vital services New Yorkers rely on."
"Coupled with the Council's proposals to secure additional revenue from the highest earners -- including PTET changes and adjustments to the UBT/PIT credit -- this is the comprehensive approach we need to strengthen the City's fiscal footing and tackle the affordability crisis without burdening working New Yorkers," she said in a statement.