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Trump criticizes New York pied-à-terre tax on his penthouse

Created at 11 Aug · 6:31 PM1 source↑ Market-relevant
IN SHORT

President Trump has publicly criticized New York's new pied-à-terre tax, which is expected to apply to his Trump Tower penthouse valued at approximately $6 million. The tax, championed by state lawmakers, aims to increase city revenue.

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Key Numbers

$1 millionminimum market value for pied-à-terre tax
$6 millionassigned market value of Trump's penthouse
900,000properties potentially subject to the tax
17,000property owners who received suspect letters

Who's Involved

Donald Trump
President criticizing New York's pied-à-terre tax
Mamdani
Lawmaker who championed the pied-à-terre tax
Kathy Hochul
Governor acknowledging rollout frustrations

↳ Why This Matters

The new tax targets high-value properties and aims to bolster New York City's finances, potentially impacting wealthy residents and real estate investors. President Trump's vocal opposition highlights political divisions over taxation and the economic direction of major cities.

Key facts

  • President Trump has criticized New York's pied-à-terre tax.
  • His Trump Tower penthouse is likely subject to the tax, with an assigned value of $6 million.
  • The tax applies to condos and co-ops valued at $1 million or more.
  • The tax was approved by state lawmakers to boost city revenue.
  • Trump has expressed concerns about the tax's impact on New York City.
  • A lawsuit has been filed challenging the tax's implementation.
  • President Trump has publicly denounced New York's new pied-à-terre tax, which is poised to affect his Trump Tower penthouse. The tax, approved by state lawmakers, applies to condominiums and co-ops with a market value of at least $1 million, and Trump's penthouse has an assigned value of approximately $6 million.

    Trump took to Truth Social to criticize the tax, warning of "Financial, and then Social, RUIN" for New York and expressing concern that it would contribute to the city becoming a "filthy, crime ridden, decrepit place." He also linked the tax to other policies, such as congestion pricing.

    The pied-à-terre tax was championed by lawmakers aiming to increase revenue for the city's budget. Despite Trump changing his primary residence to Florida in 2019, his New York penthouse remains subject to the surcharge. A lawsuit has been filed challenging the tax's publication of properties and the notices sent to owners, with some residents reporting receiving letters despite being full-time city residents. Governor Kathy Hochul acknowledged public frustration with the tax's rollout.

    Frequently asked questions

    It is a tax levied on second homes, typically apartments or co-ops, owned by individuals who primarily reside elsewhere. In New York, it applies to properties valued at $1 million or more.

    The tax was approved by New York state lawmakers to generate additional revenue for New York City's budget.

    Owners of high-value condominiums and co-ops in New York City who do not use them as their primary residence are subject to the tax.

    What Happens Next

    01The lawsuit challenging the pied-à-terre tax will proceed.
    02Further developments are expected regarding the tax's implementation and potential legal challenges.

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    Cadence

    How It Developed

    New York lawmakers approved a pied-à-terre tax on second homes valued at $1 million or more.
    Trump's Trump Tower penthouse is subject to the tax, with an assigned market value of about $6 million.
    Trump criticized the tax on Truth Social, calling it a disaster and warning of financial ruin.
    The tax is intended to raise revenue for New York City's budget.
    Trump changed his primary residence to Florida in 2019.
    A lawsuit challenging the tax's implementation was filed.
    Some residents reported receiving notices despite being full-time city residents.
    Governor Kathy Hochul acknowledged frustrations with the tax's rollout.

    Sources

    T1
    Trump lambasts pied-à-terre tax he will likely have to payPolitico

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