Governor Hochul and Mayor Mamdani propose a pied-à-terre tax targeting ultrawealthy second homes to raise $500 million annually for New York City. Initial claims that 13,000 properties would be taxed have been undermined by inconsistent data, with the governor's office now admitting the 13,000 figure was an early estimate requiring more analysis.

The tax initially applied to properties with assessed values of $5 million or more, but Marketproof analysis found only three NYC residential properties meet this threshold. The disconnect between assessed value and actual market value creates implementation challenges, with Marketproof estimating about 6,380 properties would be taxed based on market value.

Determining which properties qualify as second homes remains problematic. The NYC comptroller's report notes the city Finance Department would need to audit property owners' residency claims, with potential lapses reducing revenue and increasing legal challenges. Negotiations continue as the state budget remains a month overdue.