The Mayor of New York City, Zohran Mamdani, has revealed that he is implementing new taxes for the rich and it is set to impact some of the world’s wealthiest people.
Mamdani took to social media to share a video where he details the groundbreaking new policy which will enforce an annual fee on luxury properties that are worth over $5 million where the owners don’t live in the city full-time.
In a video posted to X, formerly Twitter, he explained: “When I ran for mayor, I said I was going to tax the rich. Well, today, we’re taxing the rich. I’m thrilled to announce we’ve secured a pied-à-terre tax, the first in New York’s history.”
The NYC mayor continued: “This pied-à-terre tax is specifically designed for the richest of the rich, those who store their wealth in New York City real estate, but who don’t actually live here.
Advert
“But even so, they’re able to reap the huge financial rewards of owning property in, dare I say, the greatest city in the world. And most of the time, these units are sitting empty, since, again, they don’t actually live here. This is a fundamentally unfair system that hurts working New Yorkers.
“Now, it’s coming to an end. This tax will raise at least $500 million directly for the city. It’ll help fund things like free childcare, cleaner streets, and safer neighborhoods.
“As mayor, I believe everyone has a role to play in contributing to our city. And some, a little bit more than others. Happy Tax Day, New York.”
This new policy is set to hit the pockets of the likes of Jeff Bezos who owns a whopping $100 million penthouse in the city but his primary residence is Florida, having moved it from Washington State.
Under Mamdani’s new plan, Bezos would be required by law to pay an annual fee on his properties in New York City and, while the exact percentage is being finalized in budget negotiations, the goal is to raise $500 million each year from roughly 13,000 units across the city.
For someone like Bezos, this will mean receiving a multi-million dollar annual tax bill just to keep hold of his Manhattan property while he’s not there.
So, where will the money be going? Mamdani has stated that the revenue will be earmarked for funding towards universal childcare, public transport and social services across the city.