New York to tax luxury second homes in NYC

New York Gov. Kathy Hochul announced a tentative budget agreement that includes a new tax on luxury second homes worth over $5 million in New York City, expected to generate at least $500 million annually. The tax on so-called pied-à-terre properties was designed to appease Mayor Zohran Mamdani and progressive voters, though it falls short of his broader push for increased taxes on the state's wealthiest residents. Critics warn the tax could drive wealthy residents away from the city, while progressive groups argue it doesn't go far enough to address the city's budget deficit.