Wealthiest New Yorkers protest mayor over new luxury property tax

An initiative by New York City Mayor Zohran Mamdani and New York Governor Kathy Hochul to introduce a tax on second homes valued at $5 million or more has triggered a strong backlash from the city’s wealthiest residents, according to Bloomberg.

The measure has been opposed by Wall Street executives, billionaires, and even US President Donald Trump, who described the tax as wrong.

Particular controversy was sparked by a mayoral press release referencing a Midtown penthouse worth $238 million purchased by Citadel LLC founder Ken Griffin.

An error in the statement, followed by a video address by Mamdani near the building, intensified criticism, with business leaders describing it as a personal attack.

The press release reportedly united Wall Street executives and wealthy New Yorkers in opposition to the mayor.

Bloomberg said even some billionaire Democratic supporters have questioned the policy.

According to business figures, their concern is not solely the tax itself, but what they view as personal targeting of an individual.

Citadel has also raised doubts about proceeding with a $4.5 billion redevelopment project on Park Avenue expected to create more than 20,000 jobs.

Despite elite opposition, a Marist Poll survey shows that 48% of New Yorkers approve of Mamdani’s performance in his first 100 days in office.

The new tax is projected to raise around $500 million for the city budget and fund social programmes such as free public transport and preschool education.

The mayor has since sought to ease tensions, stressing that the initiative was not personal and describing Griffin as an important employer and business leader.

By Bakhtiyar Abbasov