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By Maria Tsvetkova<\/p>\n
NEW YORK, April 15 (Reuters) – New York State Governor Kathy Hochul proposed on Wednesday a new tax on second \u200chomes worth over $5 million that was backed by New York \u200cMayor Zohran Mamdani.<\/p>\n
Mamdani, a democratic socialist, campaigned on a promise to tax the rich to \u200bmake the city more affordable for less-wealthy residents, but has generally faced resistance from Hochul, who opposed raising taxes in a year in which she plans to run for re-election.<\/p>\n
But in this case, the governor said in \u200ca statement on her \u2060official website, “If you can afford a $5 million second home that sits empty most of the year, you can afford \u2060to contribute like every other New Yorker.”<\/p>\n
In a press release, Mamdani’s City Hall named wealthy property owners such as Ken Griffin, founder and CEO of Miami-based \u200bhedge fund \u200bCitadel, who in 2019 paid $238 million \u200bfor a penthouse condominium overlooking \u200cManhattan\u2019s Central Park in a deal that set a record for a U.S. home sale at the time.<\/p>\n
Griffin said the day after Mamdani was elected last year that New Yorkers deserved better policies than Mamdani\u2019s talking points.<\/p>\n
Citadel did not immediately respond to a request for comment on the \u200cproposed second-home tax.<\/p>\n
Countries including France, the United \u200bKingdom and Canada impose taxes on non-primary \u200bresidences. New York’s is \u200bexpected, if implemented, to generate $500 million in annual revenue and \u200chelp close a city budget \u200bgap, according to the \u200bCity Hall statement.<\/p>\n
The statement did not put a figure on a proposed annual surcharge.<\/p>\n
“The measure targets ultrawealthy out-of-city residents and global elites \u200bwho use New \u200cYork City real estate as a vehicle for wealth storage rather \u200bthan as homes,” City Hall said.<\/p>\n
(Reporting by Maria Tsvetkova; editing \u200bby Donna Bryson and Nia Williams)<\/p>\n<\/div>\n