New York Lawmakers Approve Second-Home Tax in State Budget (1)

New York lawmakers approved a revenue package for the state budget that includes a new surcharge on pricey second homes in the city, but omits a proposal to tax all-cash property purchases.

The so-called pied-à-terre tax is expected to take effect July 1 this year, according to draft legislation filed Tuesday. The goal is to generate $500 million to help close New York City’s budget hole. Governor Kathy Hochul’s office estimates the charge would affect roughly 10,000 single family homes, coops and condominiums citywide.

The state legislature voted to approve the measure on Wednesday.

The new tax will be ...