Albany, New York - Governor Kathy Hochul recently proposed placing a tax on New York City home owners who hold a second property valued over $5 million.

In a press release shared on Wednesday, Hochul's office explained the tax – known as a pied-à-terre – would be an annual surcharge on residential properties in New York City that are not occupied as a primary residence or rented to someone else.

The tax will ensure that individuals who own luxury homes but do not live in the city are "fairly contributing" to maintaining New York and its essential services.

"If you can afford a multi-million dollar second home in New York City, you can afford to join its residents in supporting the greatest city in the world," Hochul said in an X post.

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It also aims to support NYC Mayor Zohran Mamdani's efforts to close the city's budget gap, as it is expected to generate at least $500 million a year in recurring revenue.

Mamdani, who identifies as a Democratic Socialist, has regularly called on leadership to "tax the rich," as those funds could be used to help the city as a whole.

He thanked Hochul for her proposal and said it brings NYC "one step closer to balancing our budget by taxing the ultra-wealthy and global elites."

On the other hand, Bruce Blakeman, a Republican running to unseat Hochul, criticized the proposal as "a war on homeownership and the American Dream."