New York Just Passed Mamdani’s New Tax

Added: 2026-05-30

[00:00:00]There are big changes happening in New York City. New taxes, a new mayor, and everything seems to be going to crap in a hand basket really fast. If you're from New York City, as I start this video, let me know down below what it's really like under this new mayor. You see, for decades, New York City sold itself as the financial capital of the world. A city where billionaires parked money in luxury pen houses, global companies opened headquarters, and wealthy investors bought second homes simply to have a foothold in Manhattan.

[00:00:32]Well, now New York City is making a major gamble. In an effort to close a growing budget deficit gap, lawmakers have officially passed a new pide tax targeting second homes and luxury apartments owned by wealthy individuals who do not use those properties as primary residents. All this started by a guy that never had a job on his own. Got to love it. Supporters say that the wealthy can afford it. Those are the poor people. They don't understand economics. Critics warn it could damage New York's economy far more than politicians expect. Well, no duh. All the politicians want to do is get rehired. And at the center of this debate is a very simple idea. If wealthy people own luxury apartments in New York City but primarily or New York but primarily live elsewhere, right, the city believes that they should pay significantly more taxes. Under the new law, second homes valued at 1 million above $1 million will face new annual taxes. During the first phase, condos and co-ops valued between 1 million and $3 million will face a 4% annual tax on top of what they're already paying.

[00:01:50]Homes valued between 3 million and 5 million will face a 54% tax, while properties above 5 million will face a 6.5% tax. The city expects the tax to generate roughly $500 million in additional revenue, but many investors, real estate brokers, and tax attorneys believe the long-term economic damage could be much larger than the short-term revenue gain. I'll give you a little hint. The people that own these properties, they own companies, and they own companies that are probably primarily based out of New York City.

[00:02:26]They're about to all go bye-bye. And one billionaire has already uh you know become a symbol of this entire fight and that is Citadel CEO Ken Griffin. This is interesting. You see after New York Mayor uh Zohan Mandami publicly highlighted Griffin's massive Manhattan penthouse while promoting the new tax, Griffin reportedly responded by threatening to scale back business and jobs that are tied to New York City. And that matters enormously because wealthy residents do not just pay property taxes. They support the entire economic ecosystem in New York. Luxury real estate brokers, construction firms, restaurants, hotels. I mean, how many?

[00:03:12]There's retail stores, private schools, financial firms, and art galleries. Oh, wa got charities, service workers, just to name a few. When ultra-w wealthy individuals spend time in New York, they inject enormous amounts of money into the city. That economy far beyond housing itself. Critics fear that the city may now be sending a dangerous message. Well, no freaking duh. New York is becoming increasingly hostile towards wealth creation and investment. That's because they are turning going from socialism to communism. Sorry, I digress. But wealthy individuals have something many ordinary residents do not, and that is mobility. Right? Ken Griffin already lives in Florida for tax purposes. Smart dude. And New York becomes too expensive or politically hostile. If they do, critics argue that people like him may simply spend less time there, invest less money there, or move business elsewhere entirely. And in today's world, that risk is very real.

[00:04:17]It's not just New York. California is already working on their way of destroying that state. You see, Florida, Texas, Nevada, and other low tax states are aggressively competing for wealthy residents, investment firms, and businesses leaving high tax cities. This is becoming at a partic this is happening at a particularly fragile moment right now for New York City itself. Commercial real estate remains under pressure constantly in that city.

[00:04:44]Office vacancy rates are now elevated.

[00:04:46]Remote work threatened uh or has weakened demand for Manhattan office space and high interest rates have already slowed parts of the housing market in New York. Adding additional taxes to luxury real estate could weaken demand even further. Some brokers fear high-end apartment sales may slow dramatically as wealthy buyers reconsider whether New York property is even worth the growing financial burden.

[00:05:12]And there is another uh hidden danger going on right now inside the tax structure itself. New York property valuation system has uh historically been undervalued. Many luxury properties. Some apartments worth hundreds of millions of dollars are officially assessed at a fraction of their market value.

[00:05:33]The city plans to gradually update those valuations over time. And which way do you think they're going to go? That means many wealthy owners may face dramatically larger tax bills in future years as assessments rise closer to the actual market values. For example, Ken Griffin's uh $238 million million penthouse is currently valued by the city at only $15.5 million.

[00:06:00]Under the new rules, experts estimate his annual property taxes could eventually rise to nearly $4 million on that property loan per year and over 5 million total when you're including the additional Manhattan apartments.

[00:06:15]Even wealthy investors are experiencing sticker shock. Property tax attorney Rich uh Robert Pak summed it up really bluntly and what he said was, "All my clients already feel like they pay too much." He said, "These numbers are significant. I don't care how wealthy you are. Well said.

[00:06:34]I think it's important for us to understand how these states around the country that are going into from socialism into communism, call it out for what it is, is going to destroy the real estate industry. For those of you real quick that have uh mortgage rates over 6 and a half%, I'm going to throw a link down below. I highly suggest you work on getting it refied sooner than later because home prices is already starting to drop. And this is really cool. I just got a call that a subscriber has made a phone call and had a uh 7% I believe mortgage rate and just did a free refi, no cost refi and dropped their payment significantly down under I want to say six and a quarter or six. I don't remember. I can't say the the percentages because everyone's different. Point being, it's not going to cost them anything and they're going to go crush it. So, I want to see people save money right now before uh home prices drop anymore. So, links down below for that. This is a big opportunity. This is an opportunity to witness what's happening to cities like this and hopefully it doesn't happen to a city that you live in. All right, with that being said, the real estate ninja is out.