Gov. Kathy Hochul unveils details of new pied-à-terre tax on $1M+instead of 5M, NYC push back FAFO

Añadido: 2026-05-22

[00:00:00]What's going on motivators? We got another video. We got to talk about New York. They after run and now they are finding out that it's not only Ken Griffin who is getting taxed. It's going down to lower New Yorkers. Let's get into this. cash from the real estate industry and it assumes that the city and state governments will amend the city's property tax system in order to make this work. Our state house reporter Bernadette Hogan joins me now with tonight's top story. Good evening, Bern.

[00:00:29]Good evening, Errol. So, the way that this has been described this afternoon is there is a part one and a part two.

[00:00:35]So, a little bit of a promise here. So, Governor Kathy Hochul's office sent out some details of how this second home tax would work and it would apply to individuals that own properties in the city and the city is not their primary residence. Now, apparently there'll be some exemptions, but we still don't have the details on that. But basically it deals with the assessed value of the property, not the purchase price. So, if you see there on that graphic homes assessed at 5 million to 15 million dollars will be hit with a surcharge just below 1% and it goes up from there, the top being 25 million dollars and more will be hit with a 1.3% property tax assessment. But I just want to use an example actually that the governor's office provided, Errol. They said if a property is assessed at over 11 million dollars under this new tax, they could be paying upwards of 92,000 93,000 dollars annually under this new tax and of course the governor's office, the mayor's office say it's all going to go into the city's budget for future years. Now, if you talk to the real estate industry, they argue that this could actually future investments and and these these property owners that do end up contributing to the city's tax base in a number of ways. Let's take a listen to what they had to say. It's sending a signal that, you know, those who are wealthy and those who are have choices, um they don't need to buy a second home in Manhattan. Um they can rent here if they want to be in New York. Uh they can take out a hotel room, or they could decide to purchase a second home somewhere else in this country. Of course, co-op and co-op buildings, just as an example, there's no individual tax lots. There's one tax lot for the entire co-op. So, that presented a huge challenge for the governor's office.

[00:02:24]So, that was Jason Haber, a broker from Compass Realty, and he brings up the I mean, what is he simply saying?

[00:02:31]First, it was $5 million.

[00:02:34]Now, they brought it down to $1 million.

[00:02:38]We warned New Yorkers about this.

[00:02:41]So, think about it. New York, the amount of money in the property that New York has compared to other places is very different, right?

[00:02:49]So, a home in New York a million dollars is very easy for a property in New York compared to other parts of the country.

[00:02:58]So, don't mind the people who are still paying property taxes on their property, and they don't even live there. They live in a different state. But, they're still contributing to it.

[00:03:09]They're now have to pay extra because, like everything else, if it's not hitting your pocket, you're like, "Go ahead. Do it." The people who make $5 million homes, yeah, they're good. Now, it's going down to the million-dollar homes, and eventually, it might go down to the 500,000.

[00:03:27]You see how that stuff works?

[00:03:30]It's never going to stop because you have given them the okay.

[00:03:33]And eventually, they're going to tax not just the people who are have the extra homes, they're going to tax anybody who have homes.

[00:03:43]Holcomb gave Mandani $8 billion to help clear and balance the deficit.

[00:03:50]That money has to come from somewhere.

[00:03:54]Now it's [laughter] going to come from the same people who vote. At first you're looking at a small amount, say 50 people, right? In the range of what they were going to tax. Now it's 10,000 people.

[00:04:07]That's a lot. That's a big difference.

[00:04:11]And it's going to go from 10,000, who knows, to 100,000 because they're going to change the rules and keep on changing it to please their bottom line. But you asked for this. pied-à-terre tax with city mayor Zohran Mamdani. She's lowering the threshold. She says now second homes or condos or co-ops worth $1 million could face the new levy, a pied-à-terre tax. That is down from the initial vision of $5 million homes. So more people will be impacted. If you have a home that's worth $1 million, you're going to pay up. I spoke with former NYPD chief of department John Shell Wednesday, and he had a thing or two to say about Mayor Mamdani's massive budget proposal. Watch.

[00:04:58]The budget is nothing more than a three-card Mamdani. Okay, it's a bailout by the governor because she needs the his base for her election. This budget kicks costs down the road. Even a tax on the on the wealthy for the second homes.

[00:05:13]He says 500 million. Our own controller says we're 380. That's 120 million short. So it's nothing but gimmicks.

[00:05:20]It's kicking the can down the road.

[00:05:22]We're going to have to pay for it. And the 400 billion-dollar bailout from the governor, that money wasn't free. That money could have been earmarked for you name it.

[00:05:33]Police, technology, children, whatever you want whatever you want to call it.

[00:05:37]This is not free. This is a gimmick budget, and we're going to be paying for it next year. We can't sustain this.

[00:05:43]Oh, they're going to be paying up in New York, Cherelle. Okay, so let's go through this because I mean, this is what those people do not understand and we keep trying to say it over and over again.

[00:05:56]Nothing is free.

[00:05:59]You're going to try to take it from the rich. The rich are not just going to be like, "Take all my money." They're eventually going to leave or fight it.

[00:06:08]The choices that the mayor and the governor are going to have is to lower the threshold like they're doing right now.

[00:06:15]$8 billion is a lot. With the original plan for 5 million, they were only going to bring in half a billion dollars.

[00:06:23]That's $500 million.

[00:06:27]They still need to make that 800 out.

[00:06:30]So, now they lower the threshold instead of >> [laughter] >> $1 million condos, we're going to bring it to $1 million condos.

[00:06:39]Now, it still won't make the threshold because he just said it's going to be short.

[00:06:44]Where's that money going to come from?

[00:06:46]It doesn't matter if you have a second home or not. If you have a condo from $1 million and up, you are paying.

[00:06:53]And eventually, it's going to be lower.

[00:06:56]But I'm telling you, until they feel the pain, they will never learn. New Yorkers, I feel bad for New Yorkers.

[00:07:02]Like every We want to give you good news.

[00:07:05]We want to give good good news. The good news is the New York Mets beat the Yankees the last two games. That's the only good news you got and that that's if you're a Mets fan and you know how it is. Mets versus Yankees fans, very big difference. Time was celebrating the Yeah, Time was celebrating. Time was celebrating in a big way. But let me tell you what Hochul was saying.

[00:07:20]So, you know the whole thing with $5 million properties, it's so bad that Mondaire tried to reach out to Ken Griffin. Ken Griffin didn't even pick up. He's like, "I don't even want to talk to you, guy." No, you went and doxxed my freaking place.

[00:07:33]Now you want to talk to me? Why don't you reach out to me before doxxing where I live and where I have a property at?

[00:07:38]No, no, no. You You that's not what we want to do. You you you're you're you have this taxing up the second home plan to 1 million. Tom, why is this such a big deal? And she's getting pushed back on this, but why is this such a big deal? Well, it's a big deal because um over the weekend I said it among all of us. I said, "I believe this was going to happen in exactly March of 2029. Why?

[00:08:02]Wait till the election. Just wait a couple years. Do it then. Or do it maybe in March of 2027. But get through the election." So, I was thinking, you know, that that's what will happen. I didn't think it was going to happen in 4 weeks.

[00:08:17]But guess what?

[00:08:18]The truth of these it's true in Seattle.

[00:08:21]It's true in the initiative that's going to be on the ballot in in California in the fall. And it's true in New York.

[00:08:29]Good news, we're taxing the rich. Bad news, you know I changed my mind. You're rich, too. And you. And you. Guess what?

[00:08:38]You never give the Democrats a knob on taxes cuz they're going to turn it. And the other problem is Hochul has got $4 billion she's sending to New York City as as support for that.

[00:08:52]And that is the thing again.

[00:08:54]You never give Democrat an inch. They will take a mile.

[00:08:59]It it pains me to see New Yorkers have to suffer to understand this.

[00:09:04]They have to suffer to understand it.

[00:09:07]They're crying they want free stuff at what expense?

[00:09:11]Same thing for Seattle. They want free stuff, but the mayor is kicking Starbucks and all jobs out. The people actually bringing the high revenue.

[00:09:23]Make those things make sense.

[00:09:25]It's like we are hiring and putting people in office who are incompetent.

[00:09:31]They're not for the people.

[00:09:33]Because while they're giving you free stuff, they will be charging you. So, is it really free if you're going to be paying for it either way?

[00:09:41]We're going to hike your property taxes and your paycheck taxes.

[00:09:48]I don't understand those people and their logic.

[00:09:51]They keep calling for stuff that goes against their own interest over and over again.

[00:09:57]But, Tom just said he thought it would be a year. It's been 4 months.

[00:10:01][laughter] 4 months and they started taxing middle-class people again.

[00:10:08]That makes sense. I don't get it.

[00:10:11]portion of this arrow, which has to do with a reassessment of condos and co-ops. So, right now the way that the city's tax structure work works is that these properties are assessed at a rental value and the state appears to be promising, "Hey, we'll fix the city's property tax code." Which has been the in place since the 1980s. And so, if you see there, it's a 2-year assumption. But again, it's the political problem and promise of the governor to help fill the city's budget uh by 2027. So, of course, this this this current fiscal year. Another thing that was brought up is how is this different from the mansion tax? Well, it's an That's the one-time annual tax. This will now be a reoccurring tax, this pied-à-terre tax. Um it'll be live for the next 5 years if the legislature signs off on it and the governor signs it into law. But, it will have to be approved again in 5 years. And then of course, will it actually hit that $500 million that the state promises? Dean Fuleihan, the first deputy mayor under Jumaane Mamdani, was on set earlier.

[00:11:12]Take a listen.

[00:11:14]The governor and the mayor have committed that this will raise $500 million. We're very confident that will happen.

[00:11:22]And of course, we couldn't get it Mr. Fuleihan before this blueprint came out.

[00:11:27]But of course, they say, "Listen, she says it, so we believe it." They're It sounds like they're going pretty far as far as the number of laws that they're going to have to change and the number of valuations that they're going to have to alter in order to get to that $500 million.

[00:11:41]>> Exactly. And you know, Comptroller Mark Levine has already said, as has the Real Estate Board of New York, that this is an under-assessment or an over-assessment, rather. They think it will generate a lot less tax revenue than was promised. But again, this this just launches a whole new fight, not just in the city, but in Albany, to change the city's property tax. Well, I believe they're going to get the money.

[00:12:03]I believe they will.

[00:12:04]But I don't believe they're going to get the money the way they naturally intended it to happen.

[00:12:09]I believe they're going to get that money by reducing that million property taxes down to 500. So, instead of impacting, like say, 100,000 people, it's going to impact, say, 700,000 or million people who have homes.

[00:12:28]That's the only way they could get the money. They will get it, but eventually they're going to start lowering that amount.

[00:12:34]But again, they asked for this.

[00:12:37]Kathy Hochul's now saying, "No, no, no, no, you're going to face a pied-à-terre tax on any second home you have that's valued at $1 million, not $5 million, $1 million." Now, what does she say next?

[00:12:47]She says the number of people that will be impacted, get this, ready for this?

[00:12:52]She says it's only 8,000 to 10,000 people. Hmm, 8,000 people have second homes in New York? I find that hard to believe. So, I'm looking about looking for the best estimate in terms of how many people have second homes, and I come up with several hundred thousand Yes. So, how's it possible that only 8,000 people are going to get impacted by this pied-à-terre tax, and yet several hundred thousand second homes are right now in New York? And something tells me that most of them are going to be valued up there in a million if you're talking about the high prices in New York, Charles.

[00:13:32]>> Well, what this is going to do, if true, and that's a big if, and I'll and I'll get to that in a second, is if it would actually it would devalue the properties in the city. I I thought that that was their plan all along from Zohran Mamdani and this socialist communist group. I believe that they want to see all of the value, the property values in New York devalue, government takes over more buildings, you know, he gets a that affordability message, this is how he achieves it, but I don't think it's going to happen. I'll tell you why, because Hochul blindsided Albany and the state legislators. I mean, she and they By the way, they have to approve this as well. This isn't just her saying, you know, this is this is going to happen. They have to go along and many of them have already are starting to come out on social media today and saying absolutely not.

[00:14:14]Assessed market All of this is scandalous. We're going to devalue your property so the government could now come in and take over your property.

[00:14:22]Because people going to live, you're going to be like, oh yeah, the assessment is different.

[00:14:26]Now there're going to be more homes to I mean, this is scandalous way of taking people's property.

[00:14:32]So it's damn if you do, you don't pay for it, damn if you pay for it, we're still going to find a way to take your money and call it a win.

[00:14:40]This is socialist for you.

[00:14:42]But again, the people who are going to pay the most out of this are the middle class and lower class because some people have homes worth a million dollars and they're eventually going to pay property taxes on it because I'm definitely sure they're going to start changing what it is into how they structure this new pied-a-terre tax plan. But let me know what you think. All right, motivators, if you enjoyed what you seen and heard, please like, comment, share, but most importantly, subscribe to a Black Veterans Perspective. Stay motivated.