Sparks fly over Mamdani's 'hit list' against New York's rich home ownersA list of expensive New York homes has sparked a controversy as Mamdani implements a second home tax. 13 hrs agoUS & Canada

Sparks fly over Mamdani's 'hit list' against New York's rich home owners.

Key points

• In San Francisco, California, residents in 2022 voted for an Empty Homes Tax.
• Jason Haber, who runs the American Real Estate Association, remarked the list of names and addresses threatens people's safety.
• Owning one home in New York City is a dream far beyond what plenty of residents could afford.
• "A hit list of the haves and the have-nots – a scarlet letter, " Hanks remarked during a heated public gathering at City Hall on Tuesday.
• Mamdani has defended the tax as a fair way to generate $500m in annual revenue in a city with vast socioeconomic inequality.

Owning one home in New York City is a dream far beyond what plenty of residents could afford. But in one of the most expensive cities in the world, some individuals have not only a first, but a second, home.

As part of Mayor Zohran Mamdani's aims to charge a "pied-à-terre" home tax – an annual fee for second homes in the city worth more than $5m (£3.7m), or condos and co-ops worth more than $1m, the identities of those elite few – and others with expensive primary residences in New York – were created public at the end of July.

That list, which identified individuals who office-holders noted might have to pay the tax, became one of the main topics at a city council oversight gathering this week. It was called to address reservations concerning how it was rolled out.

City council member Gale Brewer remarked she and some other council members backed the pied-à-terre tax, but pointed to "challenges" with its implementation.

City council member Kamillah Hanks remarked the list unfairly targets homeowners and could be a security problem.

As data the administration is legally required to provide each year, new York City's Department of Finance has remarked the addresses and personal information it posted were already available to the public.

But Hanks remarked the administration was suggesting to residents that their home ownership was something "to be ashamed of".

Notably, the list included almost one million properties, including addresses for celebrities and some of the city's wealthiest residents, such as hedge fund manager Ken Griffin and his $239m penthouse, director Woody Allen, former Vogue editor-in-chief Anna Wintour and actress Cynthia Nixon. The city ultimately sent tax notices to 17, 000 individuals.

At the hearing, others voiced backing for the charge and accused their so-called "wealthy neighbours" of using the hearing as an excuse to complain concerning rising taxes.

"I think the wealthy homeowners here doth protest too much, " remarked Dave Backer, a professor of school finance.

Beverly Solo, a New York City resident of 44 years – who wore a shirt saying "Tax The Rich" – remarked the pied-à-terre measure could raise notable funds for city services.

"It seems reasonable and fair to ask those who don't pay full-time income taxes here, but have luxury homes here for pleasure, to contribute to the wellbeing of New York City, " she remarked.

But, she continued, the rollout of the tax had been "a mess".

For context, a group of New York City homeowners has sued over the rollout, asking the administration to unpublish the list of almost one million properties and names.

Mamdani has defended the tax as a fair way to generate $500m in annual revenue in a city with vast socioeconomic inequality. The surcharge – which a number of other cities and countries have in different forms – has won the backing of Governor Kathy Hochul. This person previously was hesitant to raise New Yorkers' taxes.

For context, the mayor ran on a campaign platform of affordability, pledging to raise taxes to cover services like universal child care, and free and faster buses. His pledge to growth taxes has sparked backlash from some of the city's wealthiest residents who claim it will discourage residents from buying homes and investing in the US's largest city.

Representatives for Mamdani's administration did not attend Tuesday's hearing. It angered some in attendance.

Meanwhile, a spokesperson for Mamdani informed the BBC the administration asked to push back the hearing while it dealt with the legal challenge, but the council declined and office-holders cannot testify on the matter while it's being litigated.

"Imagine the gift this is to scammers, to fraudsters, to anyone with ill will, " he remarked. He remarked a foreign actor could download the list and send an email to residents posing as the city asking for tax capital.

Haber informed the BBC he has seen some buyers pause searches for expensive properties in New York as of the new tax.

"It's the surprise of this and the confusion of this that's really pushing everyone over the edge, " he remarked. Haber remarked he believes the loss of tax revenue from fewer residents purchasing pricey homes in New York would offset the effects of the pied-à-terre tax.

But Morris Pearl, a former managing director at investment firm BlackRock, remarked the idea that residents were choosing not to invest in the city since of the tax was "absurd".

"The whole point of being rich is you can live wherever you want, " remarked Pearl, a chair of Patriotic Millionaires, a group of wealthy Americans who advocate for taxing the rich.

"Someone who owns a residence that is not their primary residence that's worth more than $5m has the ability to pay more than most New Yorkers do."

Throughout the world, some countries and cities already experiment with similar secondary home taxes.

In France, homes are subject to an extra charge that varies nationwide, with a 60% local tax surcharge for homes in Paris. The tax has generated billions of euros in revenue.

Meanwhile, the city of Vancouver in Canada has an Empty Homes Tax on residences that are vacant or under-used for more than six months of a calendar year. The tax – 3% of the property's value – began in 2017 to support improve housing affordability.

Research from Canadian think tank C. D. Howe Institute discovered the tax has raised as much as $194m in revenue in eight years, and has reduced housing vacancies by as much as 21%, but has done little to bring down the average cost of rent.

In San Francisco, California, residents in 2022 voted for an Empty Homes Tax. It required owners to pay between $2, 500 to $20, 000 for apartments that are vacant for six months or more.

But like in New York, the tax faced fierce opposition from real estate and landlord groups in the technology hub, and after a group sued, a judge discovered the tax unconstitutional. It remains in limbo as the city appeals.

Pearl remarked the New York City administration's decision to launch the tax with a list of wealthy residents may not have been the most diplomatic choice.

"I do think that the mayor himself – I have suggested that he sort of unnecessarily antagonises people occasionally, " Pearl remarked. But, he continued, "I'm with him on the policy." Mamdani's growing clout pulls Democrats leftward, shaking party establishment. Wins and challenges: Zohran Mamdani's first 100 days in office.

For now, sparks fly over Mamdani' s ' hit list' against New York' s rich home ownersA remains the part of the story worth watching, and further updates are likely as more details are confirmed.