Gov. Kathy Hochul’s proposed pied-à-terre tax on pricey second homes won’t just soak the jet-setting super rich — it also will nail hard-working families and retirees who live in the same buildings, critics charge.
Managers at the landmark luxury Manhattan House Condominium at 200 E. 66th St. recently fired off a letter to state Sen. Liz Krueger and other pols griping about the plan — which Democratic Socialist Mayor Zohran Mamdani wholeheartedly backs.
The building overseers warned that the planned surtax on second homes worth more than $5 million in the city could impact the property values of every owner who lives in the same co-op and condo building because it makes the sites unattractive for future buyers.
That decreases everyone’s property values, the opponents said.
“Based on publicly available market data, Manhattan House represents well over $1 billion in residential property value. That value is not held only by absentee investors or speculative buyers. It is held by residents, families, retirees, long-time New Yorkers, and owners who rely on the stability and liquidity of the New York City condominium market,” Manhattan House said in a May 21 letter to the lawmakers.
The letter argued that the tax’s impact could extend beyond “high-value second homes” and affect existing condominium and co-op owners whose homes could be affected by “reduced market demand, valuation uncertainty, higher transaction friction, and administrative burdens.”
The new tax is expected to be included in the revenue bill to fund the state’s mammoth $268.5 billion for 2026-2027.
Mamdani personally set off a firestorm over the issue when he stood outside of a residential property owned by billionaire Citadel CEO Ken Griffin to tout the new planned tax.
Manhattan House’s famous residents over the years have included film star and Princess of Monaco Grace Kelly, jazz legend Benny Goodman, former New York Gov. Hugh Carey and comic actress Imogene Coca.
Manhattan House said the planned pied-à-terre tax could:
- Lower the value of apartments owned by many full-time New York residents.
- Make it harder for owners to sell, refinance, or retain their homes.
- Impact the liquidity and stability of the New York City condominium and co-op market.
- Affect retirees and long-time residents whose net worth may be concentrated in their homes.
Manhattan House also said the tax on the rich would impact buildings that already bear “significant tax, insurance, regulatory, labor, maintenance, and compliance costs.”
The tax could also shatter “confidence in New York City as a place where residents can invest in a home without later being subjected to rushed and poorly understood tax policy,” its management said.
Manhattan House argued that the tax should be removed from the budget and subjected to a rigorous public review and hearings.
Hochul’s office Sunday defended the levy, arguing that New Yorkers who live in their apartments will not be taxed and that the surcharge will only apply to second homes worth more than $5 million.
Mamdani, in an another apparent swipe at Citadel’s Griffin, also doubled down on championing the surtax on second homes.
“Our new pied-à-terre tax will have the ultra-wealthy elite — those who own $5 million apartments in New York City but don’t actually live here — pay their fair share,” he said on X.
His post included a cartoon sketch with one panel showing an empty apartment with a sign on the wall saying, “Miami is Home.”
Griffin lives in the Miami area, indicating Mamdani might be reviving his feud with billionaire hedge fund honcho.
The head of the city’s leading business group Sunday said Mamdani should stop demonizing business executives such as Griffin.
“I don’t think you should turn anybody into a villain — especially in the world where you have CEO’s that were assassinated, like in the UnitedHealthcare situation,’’ said Steve Fulop, president and CEO of the Partnership for the City of New York, on 77 WABC’s the “Cats Roundtable” program, referring to the assassination of the exec allegedly by Luigi Mangione.
“You had a shooting at Blackstone last year. I don’t think you should ever single anybody out. … That was bad.”
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