A New York lawmaker is pushing to extend Governor Kathy Hochul’s proposed tax on luxury second homes beyond New York City to other parts of the state. Hochul’s plan, unveiled last month, aims to raise up to $500 million in the city by targeting second homes worth $5 million or more. Now, State Senator Pat Fahy, a Democrat from Albany, wants local governments across New York to have the option to join in.
Fahy’s proposal would hit homes with a five-year average value of at least $5 million that aren’t the main residence for owners, family, or renters. It suggests an annual tax rate from 0.5% to 4% on the property’s average value. City owners with fancy vacation spots upstate or on Long Island could face it, though Fahy’s team says she might limit it to out-of-staters. Half the money would go to the state’s Aid and Incentives for Municipalities fund, which helps cities, towns, and villages, while the rest stays local.
Fahy argues many upstate areas like Lake George and the Finger Lakes need the cash, as home prices have skyrocketed since COVID-19. She points out vacant luxury homes and short-term rentals are pricing out locals and their kids from childhood communities. “Towns and villages really could use extra help, and AIM money has been critical upstate,” she said.
But the idea faces pushback. Republican Senator Pam Helming, representing Finger Lakes areas, slammed it outright, saying the focus should be cutting costs, not piling on taxes. Real estate agent Daniel Davies from the southern Adirondacks added that second-home owners already fund schools and services without using them much. “They pay their way,” he said.
Budget talks continue, with Hochul skeptical about adding it statewide. “This was for the city’s crisis; we haven’t discussed other areas, and I’m not adding much more,” she noted late Friday. Still, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie show openness. Stewart-Cousins called it worth discussing as an opt-in revenue booster, while Heastie said he’d listen as budget talks on taxes kick off amid other issues like insurance and immigration.
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