politics
NYC Mayor Mamdani Unveils Revised Budget With Tax on High-Value Non-Resident Second Homes
Brisbane Lord Mayor Adrian Schrinner criticized the federal government's decision to limit negative gearing and the capital gains tax discount, arguing the changes will reduce rental supply and fail to address the housing shortage. He announced council approval of zoning changes impacting 14 percent of the city to allow taller buildings, smaller lots and reduced parking requirements.
May 13, 5:00 AM·3m read5 sources
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The Sydney Morning HeraldAudio version
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New York City Mayor Zohran Mamdani on Tuesday unveiled a revised $124.7 billion budget for fiscal year 2027 that includes a new annual tax on non-resident second homes valued at $5 million or more. The measure is projected to generate up to $500 million annually, though the city comptroller suggested a more realistic range of $340 million to $380 million after accounting for behavioral changes.
Mamdani said the budget closes a $12 billion revenue gap inherited from prior administrations without broad property tax increases on most owners.
The proposal is one of several international examples of governments applying higher taxes on non-primary residences. Paris has maintained higher taxes on vacant properties for years. Jacques Baudrier, Paris deputy mayor for housing, said officials hoped at least 20,000 homes would return to the market.
However, a 2025 report by France’s Cour des Comptes found the measures had not produced a significant overall reduction in vacant homes.
Experts reviewing international experience said such taxes typically fall into two categories: recurring surcharges on non-primary residences or one-time transaction taxes. They noted that second homes often represent only around 15 percent of housing stock even in high-concentration areas.
Evidence from Vancouver, London and Paris indicates the policies can raise revenue and reduce vacancy rates in luxury segments but have shown little measurable impact on broader rents or housing prices.
In Brisbane, Lord Mayor Adrian Schrinner told a Property Council of Australia lunch that Brisbane City Council would vote before the end of June on alterations to low-medium residential zoning that cover about 14 percent of the city. The changes would permit increased building heights, smaller block sizes and fewer parking spaces.
