Hochul broke with Mamdani on almost everything, but she just backed his plan to tax the rich and named Ken Griffin to make the point

New York Governor Kathy Hochul has proposed a new annual tax on second homes within New York City valued at over $5 million. The proposal, known as a pied-a-terre tax, has been backed by Mayor Zohran Mamdani, a democratic socialist who campaigned on taxing the wealthy to make the city more affordable.

The move marks a notable shift for Hochul, who has generally resisted raising taxes, particularly heading into a re-election year. As detailed by Reuters, the governor stated on her official website: “If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker.”

The tax is specifically designed to target luxury residential properties that are not occupied as a primary residence. It would not apply if the home is the owner’s primary residence, rented to a primary resident, or occupied by the owner’s family, leaving it squarely aimed at high-value properties used for wealth storage rather than housing.

The proposal puts a name to the problem, and that name is Ken Griffin

City Hall’s press release singled out Ken Griffin, the founder and CEO of Miami-based hedge fund Citadel, as an example of who the tax would affect. Griffin paid $238 million for a penthouse overlooking Central Park in 2019, a deal that set a US home sale record at the time. The day after Mamdani was elected, Griffin said New Yorkers “deserved better policies than Mamdani’s talking points.” Citadel has not commented on the proposed tax.

If implemented, the tax is expected to generate $500 million in annual revenue, which City Hall says would help close a significant budget gap. Mamdani had previously signaled the fiscal pressure facing the city, warning that a property tax hike could become necessary if Albany declined to adopt new taxes on the wealthy. The pied-a-terre tax represents an alternative path that avoids burdening ordinary residents.

New York would not be alone in adopting such a measure. France, the United Kingdom, and Canada already impose similar taxes on non-primary residences, according to Governor Hochul’s office.

Mayor Mamdani called it “the first of its kind in our state,” adding that his administration is “fighting every day to make sure we address this fiscal deficit fairly.” Mamdani has consistently framed New York’s budget shortfall as a structural problem requiring revenue from the city’s wealthiest residents rather than cuts to essential services.

The proposal has drawn broad support from city officials. City Council Speaker Julie Menin called it a “smart, sensible proposal” that will generate revenue without burdening working New Yorkers. Borough presidents from Manhattan, Brooklyn, the Bronx, Queens, and Staten Island all endorsed the measure, with several specifically arguing that those who can afford $5 million second homes should contribute to the public services that make the city a safe and viable place to invest.