NY Real Estate, Business Groups Lobby to Defang Second Home Tax

New York’s real estate and business communities are viewing a proposed tax on second homes as the first step in a multi-year push to raise taxes on wealthy residents.

Gov. Kathy Hochul (D) buckled on her pledge to avoid tax hikes on high earners and corporations as part of this year’s state budget, proposing a “pied-à-terre” tax that applies to second homes in New York City worth more than $5 million. The levy is expected to raise $500 million annually, according to the governor’s projections, as the city works to close a $5.4 billion two-year budget gap.

While corporate and ...