Hochul and Mamdani’s new fees may cause chaos in NYC property tax system as critics wonder ‘who gets targeted next’
Governor Kathy Hochul and Mayor Zohran Mamdani have proposed new taxes targeting wealthy property owners in New York City, including a pied-à-terre tax on luxury second homes and a potential transfer tax on high-value cash purchases. Critics warn the hastily proposed measures could destabilize the city's complex property tax system and drive wealthy residents away. The plans remain unclear in key details, with experts urging comprehensive reform rather than piecemeal changes.
- ▪Governor Kathy Hochul proposed a pied-à-terre tax on second homes with assessed values over $1 million in condos and co-ops, and over $5 million for one- to three-family homes.
- ▪Mayor Zohran Mamdani supported the tax as a way to address inequality and close a $5.4 billion city budget gap, though he faced criticism for prioritizing symbolism over sustainability.
- ▪Experts like Andrew Rein of the Citizens Budget Commission and Abir Mandal of the Tax Foundation warned that implementing taxes on a flawed assessment system could create more problems than solutions.
- ▪The proposal includes a plan to overhaul how condos and co-ops are valued for taxation within two years, aiming to align them with single-family home assessments.
- ▪Billionaire Ken Griffin criticized a viral video by Mamdani targeting his Manhattan penthouse and said he would expand his business operations in Miami instead of New York as a direct response.
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Metro Hochul and Mamdani’s new fees may cause chaos in NYC property tax system as critics wonder ‘who gets targeted next’ By Vaughn Golden, Matthew Fischetti and Matt Troutman Published May 16, 2026, 9:31 a.m. ET Tax-y Kathy is living for Zo-day. New taxes targeting the rich pushed by Gov. Kathy Hochul this week may appease socialist Mayor Zohran Mamdani in the short-term, but insiders warned they are so slapdash they’ll open cans of worms for the Big Apple’s future. Hochul floated a proposal for a pied-à-terre tax on luxury second homes and entered discussions on a transfer levy on $1 million residences bought with cash as she and state lawmakers entered their sixth week of overtime haggling over the Empire State’s next budget.
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