Gov. Hochul's Pied-à-terre Tax Is a First Step, but Not Nearly Enough

In response to Gov. Kathy Hochul’s announcement that she would propose a pied-à-terre tax in New York City, Invest in Our New York Campaign Manager Brahvan Ranga released the following statement:

“Even Gov. Hochul can’t ignore reality: New York City is facing a budget crisis, our state is losing billions of dollars in federal funding, and an ever-growing chorus of New Yorkers — including unions, state legislators and the 1 million voters who elected Mayor Mamdani — are calling on her to make the ultra-wealthy pay what they owe in taxes.

“The governor’s move to support a pied-à-terre tax on second homes in New York City is a first step toward addressing the city’s budget shortfall, but the estimated $500 million in revenue it would generate annually does not do nearly enough to close the city’s $5.4 billion deficit, nor does it address the colossal scale of federal cuts. It also does not include any revenue for the rest of the state. Most importantly, it would not protect the 1 million New Yorkers at risk of losing their Medicaid or Essential Plan coverage or the 200,000 people poised to lose their SNAP benefits.

“Gov. Hochul must adopt all progressive revenue proposed in the Senate’s and Assembly’s one-house budgets, including tax hikes on the highest-earning New Yorkers and most profitable corporations, to ensure that no New Yorker loses their healthcare coverage or goes hungry and to enact Mayor Mamdani’s wildly popular affordability agenda. Anything less fails to meet the moment.”

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