The Partnership for New York City issued the following statement about the proposed pied-à-terre tax increase. 

“The Partnership shares the goal of closing New York City’s budget gap and sustaining the services New Yorkers depend on. But we urge the Governor and Mayor to subject this tax increase proposal to rigorous fiscal analysis before it advances.

Pied-à-terre properties already generate substantial property and transfer tax revenue while consuming comparatively little in city services. A surcharge that discourages high-end nonresident purchases or causes those buyers to bid lower could erode property assessments and transfer tax receipts citywide, potentially offsetting much or all of the projected $500 million gain. The city’s fiscal team should model that dynamic across a multi-year window before treating this as found money.

More fundamentally, new revenue alone will not stabilize the city’s finances. The administration has yet to put forward a serious plan to control the cost side of the ledger. Without that, proposals like this offer short-term relief at the risk of longer-term structural damage to a market segment the city’s economy depends on.

We look forward to engaging constructively with the Mamdani administration and state leaders on a balanced approach to fiscal stability — one grounded in evidence, not politics or assumptions.”