Governor Kathy Hochul blindsided the real estate industry with a last-minute proposal for an annual tax on New York City second homes worth over $5 million, leaving no time for organized pushback.

The key issue is its recurring nature. Unlike the 2019 one-time transfer tax, ongoing costs tend to weigh directly on property values, raising concerns across the luxury market.

Politically, however, the move is calculated. Hochul avoids raising income taxes while targeting a narrow ...