**NYC Targets Empty Mansions: New Tax on $5M+ Second Homes**

New York Governor Kathy Hochul has proposed a new annual tax targeting luxury second homes in New York City. The so-called "pied-à-terre tax" would apply to properties valued at $5 million or more that are not a primary residence. Here are five key details about the proposal: 1. **It targets part-time residents.** The tax is designed for wealthy individuals who own high-value apartments or homes in the city but live there only part-time. Their primary residence must be elsewhere. 2. **The tax rate increases with value.** Properties valued between $5 million and $6 million would face a 0.5% annual tax. The rate would rise progressively, reaching 4% for homes worth $25 million or more. 3. **It aims to generate revenue for public services.** Supporters argue it is a fair way to raise funds for housing and transit from owners who use city infrastructure but pay less in income taxes. 4. **Opponents call it a penalty on investment.** Critics warn it could discourage real estate investment and spending in the city, potentially hurting the construction and service industries. 5. **It requires legislative approval.** The proposal is part of the state budget negotiations. The legislature must agree for it to become law. The measure revives a long-debated idea to address housing inequality and generate state revenue from the luxury real estate market.