en.Wedoany.com Reported - On April 16th, New York City Mayor Zohran Mamdani and New York State Governor Kathy Hochul jointly announced a new "Temporary Residence Tax" on homes valued over $5 million whose owners do not primarily reside in New York City. According to City Council Speaker Julie Menin, the proposal is "a smart, reasonable proposal." This tax specifically targets luxury residential units owned by absentee owners that remain vacant for most of the year.
As reported by Daniel Jonas Roach, such temporary residence taxes are relatively common in major global cities. Governor Hochul's office estimates that this tax could generate approximately $500 million in annual revenue. The funds raised will be used to support city public services such as free childcare, street cleaning, and community safety. The proposal has garnered relatively high support among New York City residents.
Following the tax announcement, New York City Comptroller Mark Levine concurrently unveiled a new commitment called the "New York City Housing Investment Plan." The plan allocates $4 billion in capital from the city's pension funds to invest in affordable housing. This investment will be used to support the construction of new mixed-income housing, workforce housing, and affordable housing, while also covering the maintenance and renovation of existing housing units, as well as the conversion of office buildings to residential use.
The Temporary Residence Tax proposal still requires final approval from the New York State Legislature. When announcing the policy, Mayor Mamdani specifically chose a location outside the penthouse at 220 Central Park South, which hedge fund Citadel CEO Ken Griffin purchased for $238 million in 2019. Griffin's property set a record for the highest residential sale price in the United States at that time. The Mayor's office stated that this tax will address a "fundamentally unfair system" where some owners, despite not living in New York City, can benefit from the asset appreciation of New York City real estate.
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