New York Mayor Zoran Mamdani issues first executive order
New York City’s new mayor, Zoran Mamdani, announced an executive order targeting housing while revoking past orders such as the IHRA’s definition of anti-Semitism.
Zoran Mamdani has announced plans to tax the wealthy, one of his key campaign promises.
The mayor, alongside Gov. Kathy Hochul, announced the state’s first new pied-à-terre tax.
But what is a pied-a-terre tax, and has it ever been introduced?
Here’s what you need to know:
Meaning of pied-à-terre tax
Pied-à-terre means “down to earth” in French and can mean a second home or residence.
The new tax “would impose an annual surcharge on one- to three-unit homes, condos, and co-ops valued at $5 million or more if the owner has another principal residence outside of New York City,” the city said.
This is the first of its kind in the state and a step toward one of Mamdani’s key campaign points: increasing taxes on wealthy residents.
“This measure targets the ultra-wealthy and global elite who use New York City real estate not as a home but as a means to accumulate wealth,” a release about the measure said.
“It’s expected to bring in $500 million a year, including some of the most expensive homes in the country.”
The Mamdani administration cited as examples billionaire Ken Griffiths, who owns a $240 million penthouse in Manhattan, and Russian car dealer Alexander Varshavsky, who owns a $20.5 million property in the city.
Where else could the pied-a-terre tax be spent?
Although many people do not refer to this as a pied-à-terre tax, similar rules are in place elsewhere around the world.
For example, British Columbia has a vacant properties tax, which, according to the province’s website, “aims to turn vacant properties into housing for British Columbians and to ensure that foreign owners and those with primarily overseas income contribute their fair share to BC’s tax system.”
France has a real estate wealth tax, which applies if the net taxable value of a household’s French real estate portfolio exceeds €1.3 million.
In Oakland, California, voters in 2018 approved a vacant property tax of $3,000 to $6,000 per year on properties used less than 50 days a year.
These are just a few examples of where similar taxes apply.
“Along with the governor, our administration is fighting every day to fairly address this deficit. The wealthy contribute what they owe, and our budget reflects our commitment to working New Yorkers who are being priced out of our city,” Mamdani said in the release.
