It's a luxury tax that only affects people wealthy enough to have a second home in NYC. These people, by virtue of not living there, aren't paying income tax and thus don't contribute as much as someone who is.

It's a revenue policy. It's effectively a wealth tax, cleverly implemented largely within the existing tax regime.

Ken Griffin spend 183 days a year in Florida, so he pays no NY state or NYC income tax. He does pay ~1.8% income tax on his $238 million home though. Now he will pay significantly more. (His property is also assessed at a far lower number.)

Property taxes are a type of wealth tax

Real estate cannot move. If you are wealthy enough to own a second home worth at least $1M or more, you are likely very wealthy (top 2% of US households by net worth threshold is ~$5.5 million). It is a wealth tax implemented on a real estate asset component of a high net worth human's total portfolio.

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