Where has a pied-à-terre tax been used? Mamdani's move to tax rich

Zohran Mamdani announced plans for one of his key campaign promises: taxing the rich.

Alongside Gov. Kathy Hochul, the mayor unveiled a new pied-à-terre tax -- the state's first.

But, what is a pied-à-terre tax, and has it worked before?

Here's what to know.

Pied-à-terre tax meaning

Pied-à-terre, French for "foot on the ground," means a secondary home or residence.

The new tax "will levy an annual surcharge on one to three family homes, condominiums and co-ops valued above $5 million when owners have a separate primary residence outside of New York City," the city says.

It's the first of its kind in the state and is the first step to one of Mamdani's major campaign points, which was taxing richer residents more.

"The measure targets ultrawealthy out-of-city residents and global elites who use New York City real estate as a vehicle for wealth storage rather than as homes," a release on the move said.

"It is projected to generate $500 million in annual revenue, including from some of the most expensive residences in the country."

Two examples the Mamdani administration used was billionaire Ken Griffith, who owns an almost $240 million penthouse in Manhattan, or Alexander Varshavsky, a Russian auto-dealer who owns a $20.5 million property in the city.

Where else has a pied-à-terre tax been used?

Although many don't refer to it as a pied-à-terre tax, other places across the globe have similar rules in place.

British Columbia has a vacancy tax, for example, that "is designed to turn vacant homes into housing for people in British Columbia, and ensure foreign owners and those with primarily foreign income contribute fairly to B.C.’s tax system," according to the province's website.

France has a real estate wealth tax, which applies if a household's French real estate portfolio exceeds 1.3 million euros in taxable net value.

In Oakland, California, voters approved a vacant property tax in 2018 which charges $3,000 to $6,000 annually on properties used less than 50 days a year.

These are just some of the examples of places that have similar taxes.

"Alongside the governor, our administration is fighting every day to make sure we address this fiscal deficit fairly, where the wealthy contribute what they owe and our budget reflects our commitment to the working New Yorkers being priced out of our city,” Mamdani said in the release.