Hochul Tries to Cut Loose from Pied-à-Terre Tax Fight

Gov. Kathy Hochul is trying to put distance between herself and the pied-à-terre tax fight, but the luxury levy may keep dogging her for years. The issue flared again after a Staten Island judge ordered a pause on the rollout, shining new attention on a plan that has already stirred tension between the governor’s team and City Hall.

The tax, aimed at luxury second homes, was approved by Hochul and state lawmakers in May as part of budget talks. It grew out of Mayor Zohran Mamdani’s push to “tax the rich,” a message that helped define his campaign and forced Hochul into an awkward position with business leaders and affluent New Yorkers. One business community source involved in the talks said the political damage could be serious as Hochul seeks re-election this fall against Republican challenger Bruce Blakeman. “She can’t be running on ‘tax and spend Kathy,’” the source said.

Hochul once projected confidence on the issue. Before she formally backed Mamdani, she said she had spoken with hundreds of business leaders and promised to stay engaged. “I’ve spoken to hundreds of business leaders saying, ‘Listen, nothing is going to happen to this city without me being aware of it and involved in it,’” she said. But as problems mounted with the tax plan, her tone shifted. This week, she said the state was not responsible for the rollout itself, and her spokeswoman Jennifer Goodman later reinforced that message after the court action.

Goodman said the lawsuit over how the tax is being administered belongs with the city and the courts. At the same time, she defended the policy itself. “While this lawsuit about the administration of the tax is a matter for the city and the courts to work through, the governor continues to believe that people who can afford a multimillion-dollar second home in New York City can afford to pay their fair share,” Goodman said Monday.