Trump is exploring the possibility of a federal ban on the tax on second homes in New York
U.S. President Donald Trump said he is exploring the possibility of federal intervention to stop New York’s new tax on second homes owned by wealthy individuals. In a post on Truth Social, he called the initiative a dangerous political experiment and stated that such a tax must be stopped immediately.
This refers to the so-called “pied-à-terre” tax—a levy on owners of real estate that is not their primary residence. According to CNBC, the initiative was promoted by New York City Mayor Zoharan Mamdani and New York State Governor Katie Gokul, and the state legislature passed it in late May.
The tax would increase the tax burden on second properties valued at $1 million or more. Higher rates are set for more expensive properties. Mamdani had previously estimated potential revenue at $500 million, but New York City Comptroller Mark Levin stated a few weeks later that the amount could range from $340 million to $380 million.
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Trump also claimed that the second-home tax would allegedly prompt thousands of people to move to regions with lower taxes, which could offset the potential revenue. CNBC notes that there are differing estimates regarding the impact of higher taxes on the outflow of wealthy residents.
The president’s statement came amid a legal dispute over the tax’s implementation. Three New York City residents filed a lawsuit in the state Supreme Court, challenging the city’s release of a list containing the names, addresses, and property values of hundreds of thousands of homeowners, as well as notices sent to 17,000 individuals who could potentially be subject to the tax.
On Monday, Staten Island Judge Wayne Ozzi temporarily barred the city from taking any further action related to the list and the letters. Subsequently, the order was suspended due to an appeal: according to CNBC, filing a motion for leave to appeal automatically halts enforcement of such an injunction for the time being.
