Hochul Proposes NYC Second Home Tax

The measure is expected to raise approximately $500 million annually, providing critical funding for the city's struggling public services.

While Hochul has previously opposed broad tax hikes, she argued that this targeted luxury tax is a fair way to generate revenue from those who benefit from the city's amenities without contributing to its income tax base.

Real estate groups have warned that the surcharge could dampen the high-end property market and discourage investment.

The proposal faces a tough battle in the state legislature as lawmakers debate alternative solutions to the fiscal crisis.