New York Imposes Tax on $5 Million Second Homes to Fund Preschool
Updated
Updated · The New York Times · Jul 20
New York Imposes Tax on $5 Million Second Homes to Fund Preschool
3 articles · Updated · The New York Times · Jul 20
Summary
New York’s pied-à-terre tax took effect this month after the State Legislature approved it in May, targeting second homes in New York City valued at about $5 million and above.
The measure is meant to raise money for priorities including expanded preschool while charging part-time owners who use city services but often avoid New York City income tax by spending fewer than 184 days there.
Gov. Kathy Hochul and Mayor Zohran Mamdani backed the tax, which supporters cast as a fairness measure rather than an economic drag on the city.
Similar levies already exist elsewhere, including Vancouver’s 2017 Empty Homes Tax, with Toronto, Rhode Island, Singapore and Paris also using taxes on underused or nonprimary homes.
Could New York’s new second-home tax actually drive more wealthy owners—and their tax dollars—out of the city, undermining its intended benefits?
How will the complexities and exemptions of the pied-à-terre tax impact both revenue generation and the luxury real estate market in NYC?
With similar taxes in places like Vancouver and Rhode Island, what lessons can New York learn to ensure its policy achieves fairness without backfiring?