ALBANY, N.Y. — Senator Patricia Fahy released the following statement related to negotiations surrounding the FY2026-27 New York State final budget, as reported by City & State today:

“I strongly support Governor Hochul’s proposal to establish a pied-à-terre tax on ultra-luxury second homes in New York City, and recommend we take the next step by expanding a version of this policy statewide.

Across Upstate New York, from the Capital Region to the Hudson Valley and the Adirondacks, we are seeing a rapid increase in high-value, non-primary residences, many of which sit vacant for much of the year, while driving up housing costs for full-time residents. In parts of the Adirondacks, nearly 20% of homes are unoccupied, and in some communities, seasonal housing now outpaces year-round occupancy.

These properties benefit from local infrastructure, public safety, and municipal services, yet are often owned by individuals whose primary residence is outside New York, meaning they do not contribute to our income tax base. That imbalance is increasingly felt in smaller communities, where even modest shifts in housing supply and municipal budgets can have outsized consequences.

Targeting properties valued above $5 million is projected to generate approximately $500 million annually for NYC, which is rooted in a simple principle: those with the greatest ability to contribute should do so, and we should acknowledge that the housing pressures it seeks to address are no longer confined to New York City.

Allowing municipalities outside NYC to ‘opt-in’ to a local pied-à-terre tax for non-NYS residents, while designating half of this new revenue into Aid and Incentives to Municipalities (AIM) funding, will provide immediate, flexible relief to cities, towns, and villages across the rest of the state. This will assist localities that have borne a disproportionate burden in providing services to these large properties and help to stabilize property taxes, maintain core services, and invest in the economic competitiveness of communities across our State. 

AIM funding has remained largely unchanged until the last couple of years, even as local governments face rising costs for public safety, infrastructure, and essential services. In real terms, many municipalities are operating with less state support today than they were a decade ago.

This is a balanced, pragmatic approach: one that asks more from those with the greatest capacity to contribute, while protecting everyday New Yorkers and strengthening the communities they call home.”

###