Here's what smart people are saying about NYC's proposed annual pied-à-terre tax on homes worth $5 million or more
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New York City is proposing a pied-à-terre tax on second homes valued over $5 million, potentially raising $500 million in revenue. The tax has divided experts, with some seeing it as a way to raise revenue from the ultrawealthy and others warning of unintended consequences for the housing market.
New York City and Governor Kathy Hochul have jointly announced a proposed pied-à-terre tax on luxury homes worth over $5 million. The tax aims to raise up to $500 million in revenue for the city. Supporters, like Emily Eisner of the Fiscal Policy Institute, see it as a way to align the city's tax system with its growing wealth. Critics, however, argue it could have negative downstream effects on the housing market. Gabriel Zucman, a professor at the Paris School of Economics, disputes the notion that the tax will drive wealthy homeowners out of New York, calling it a 'myth.' The proposal is part of Mayor Zohran Mamdani's campaign promise to tax the rich.
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