A bloc of DSA lawmakers have plans to push for new ways to tax the state’s wealthiest beyond the second-home surcharge.
Pieds-à-terre are just the beginning, according to half a dozen left-leaning politicians who rallied outside a Brooklyn courthouse on Wednesday in support of Mayor Mamdani’s first stab at taxing the rich.
Emboldened by an election cycle that saw Democratic Socialists of America and Working Families Party candidates nearly sweep their primaries, a slate of progressive lawmakers likely headed to the state legislature previewed a raft of bills dubbed the Invest in Our New York package building on the second home surcharge.
“We have a message for the wealthy that have a problem with the pied-à-terre tax: this is the floor, not the ceiling, baby,” Assembly member Diana Moreno, who represents Mamdani’s former Queens district, said. “Next year we’re going to fight for an income tax, a corporate tax and an heir tax. We’re going to pass the whole IONY package, because that’s what is required to guarantee working New Yorkers a dignified life.”
The DSA politicians — who gathered at the courthouse with tiny violins to signify their feelings toward pied-à-terre owners fighting the surcharge — think they have a chance to sway Gov. Kathy Hochul if she retains her seat in next week’s election, given the revenue needs that accompany her commitment to fund the expansion of universal childcare across the five boroughs.
“Keeping her accountable to her own words and promises requires her to support new taxes on the wealthy and new revenue,” State Sen. Jabari Brisport said.
Moreno highlighted the New York City corporate tax bill she sponsored with State Sen. Kristen Gonzalez, which would raise tax rates for corporations and unincorporated businesses with incomes of $5 million or more. Brisport has sponsored an “Heirs’ Tax” bill that would apply to inherited amounts over $250,000, aiming to generate an estimated $8 billion annually, with exemptions for spousal transfers, retirement accounts or pensions and primary residences.
What we’re thinking about: Do you think the power balance will shift towards more taxation getting through Albany in the upcoming legislative session? Let me know at ben.miller@therealdeal.com.
A thing we’ve learned: Second home surcharges are also on the table for districts beyond New York City, with State Senator Patricia Fahy calling for a statewide expansion to include Upstate and Long Island.
Elsewhere…
— New York City’s parks aren’t a great place to find relief, with The City Reporter tallying 68 bathrooms closed across the city’s green spaces and playgrounds. Nine of those facilities have been closed for at least nine years, and only three have a capital repair project scheduled. Mayor Mamdani launched a pilot program to install 17 modular public bathrooms so far across the city, while a City Council plan to set up 2,120 new bathrooms by 2035 is still delayed.
— Former Schools Chancellor David Banks said he tried and failed to persuade ex-Mayor Eric Adams to change the admissions criteria for the city’s specialized high schools. The Specialized High Schools Admissions Test is the sole determinant of whether a student gets into one of the city’s eight specialized public high schools, which critics say don’t represent the city’s broader demographics. Black students received just 3.5 percent of acceptance letters leading into this school year, while Hispanic students received 6.5 percent, City & State reported.
— Mayor Mamdani will delay plans to replace the chair of the city’s Commission on Racial Equity, Linda Tigani, who has emerged as a sharp critic of his administration. The move comes after City Council backlash, with Mamdani and Speaker Julie Menin agreeing that Tigani will now serve through July 2027 after her term was set to expire at the end of October, Gothamist reported.
Closing time
Residential: The most expensive residential sale recorded Wednesday was $9.2 million for a 4,631-square-foot condominium at 252 East 57th Street in Sutton Place. Lynn Mazin with Compass had the listing.
Commercial: The most expensive commercial transaction was $9 million for a 21,174-square-foot office unit at 185 Broadway in the Financial District. SL Green sold the unit to The Spiritual Assembly of the Bahá’ís.
New to the Market: The highest price for a residential property hitting the market is $25 million for a co-op unit at 427 Washington Street in Tribeca. The Hudson Advisory Team at Compass has the listing.
— Matthew Elo
