Amazon founder Jeff Bezos recently expressed support for New York City’s proposal to levy a new tax on pied-à-terre residences. Bezos stated that increasing revenue by raising taxes on out-of-town property owners is a reasonable measure. He stands out as one of the few billionaires supporting this proposal.
“I believe that the ‘pied-à-terre tax’ is a good thing for New York,” Bezos stated during an interview with CNBC on May 19.
It is worth noting that Bezos himself, who currently resides in Florida but owns multiple properties in New York City, is likely to become a taxpayer under this new tax. Back in 2019, Bezos bought three apartments in the Manhattan Flatiron District in a single swoop, totaling approximately $80 million.
This new tax proposal was put forward by New York Governor Hochu, planning to impose an additional tax on single-family homes and apartments with a market value of $5 million or more (which is reportedly being expanded to $1 million or more). The specific details of this tax are still under negotiation, and the final New York State budget has yet to be determined.
Both the city and state governments hope to raise $500 million annually through this new tax to offset New York City’s current budget deficit, which is in the billions.
The proposal has sparked significant controversy in the New York political and business community. This is due to Mayor Mamdani calling out Citadel CEO Ken Griffin in a publicly released video, using his $238 million mansion as an example of who would be subject to the tax in the future. Griffin angrily responded to the mayor’s remarks, calling them “chilling and unfounded.”
During the interview, Bezos also gave his opinion on the mayor’s video and harshly criticized Mamdani’s public naming of the billionaire.
“Ken Griffin is no villain. He has not harmed anyone, let alone New York. In fact, quite the opposite,” Bezos emphasized. He mentioned that debating the pros and cons of a tax policy is acceptable, but the mayor’s personal attacks were completely uncalled for and unnecessary.
This debate surrounding the pied-à-terre tax continues to provoke strong reactions within New York’s political and economic spheres.