New York state leaders are developing the framework for a proposed tax on high-priced second homes in New York City, working through key details on implementation and scope.

Officials are addressing how much owners of expensive second homes would be required to pay under the proposed levy, which would target properties used as part-time residences rather than primary homes.

One significant challenge facing lawmakers involves determining ownership structures, particularly properties held through limited liability companies (LLCs). These corporate entities can make it difficult to identify actual property owners and assess appropriate tax liability.

The proposed tax has drawn opposition from some real estate industry leaders. Steven Witkoff, CEO of the Witkoff Group, has argued that the measure would negatively impact New Yorkers more broadly, though specific details of his concerns were not elaborated.

The pied-à-terre tax concept has been discussed in New York for several years as a potential revenue source, targeting wealthy individuals who maintain expensive properties in the city but use them infrequently. State officials continue to work through the technical and legal aspects of implementation.