Hochul's Fundraiser at The Dakota Sparks Criticism Over Pied-à-Terre Tax

New York Governor Kathy Hochul is facing criticism after hosting a campaign fundraiser at The Dakota, a luxury building where residents often own multiple properties. This event has drawn ire from Democratic insiders and those with second homes in Manhattan, as Hochul has been a proponent of the city's controversial pied-à-terre tax.

The tax targets high-value second homes, specifically taxing properties valued over $1 million for co-ops and more than $5 million for houses. A liberal insider commented on the irony of the situation, stating, "Gov Hochul is the architect of [NYC’s] pied-à-terre tax, and she’s having a fundraiser, of all places, at the Dakota. The irony! Only Democrats would have the pied-à-terre tax and then have a fundraiser at a building where everybody has second or third homes."

The fundraiser was held at the residence of Dennis and Karen Mehiel, who purchased their apartment in The Dakota for $10.8 million in 2022. The building, located on Central Park West, has a storied history and has been home to notable figures such as John Lennon and Yoko Ono, Leonard Bernstein, Lauren Bacall, and Judy Garland.

Governor Hochul and New York City Mayor Zohran Mamdani had projected that the pied-à-terre tax would generate over $500 million in revenue. However, reports indicate that thousands of homeowners have successfully appealed their tax assessments, and a significant number of exemption applications have been approved. Earlier this month, 10,000 exemption applications had been filed, with 5,700 of them approved.

Hochul's fundraising efforts have historically drawn support from prominent real estate figures, including Jed Walentas, Douglas Durst, members of the LeFrak Organization, and Larry Silverstein.