Mamdani: Residency Important When It Suits Him

New York City, NY. By NANCY @ Adobe Stock

New York City Mayor Zohran Mamdani has repeatedly called for the abolition of Immigration and Customs Enforcement, strengthened the city’s sanctuary policies to resist cooperation with federal deportation efforts, and whose proudest moment as a state lawmaker was the creation of a fund for undocumented immigrants to receive unemployment benefits they would have been denied at the federal level.

Given his fondness for the undocumented, it’s interesting to watch Mamdani this week as he is focused on identifying who is, and who isn’t, a New Yorker, so he can implement his policies of taxing and subsidizing appropriately.

The first instance for Mamdani’s use of ID relates to the government groceries Your Survival Guy already profiled. Mamdani and his interim head of the city’s Economic Development Corporation, Jeanny Pak, suggested at a press conference that shoppers would be required to be New Yorkers. She called it a “library-card-esque” system, in other words, an ID proving residency.

Another effort by Mayor Mamdani that you’ve read about here on YourSurvivalGuy.com is his pied-à-terre tax. The tax is supposed to target out-of-town residents who own homes in the city. To avoid the tax, you must prove you’re a resident. That’s leading to some interesting findings, as many in-town residents have registered their vehicles outside the city to avoid crushing insurance rates. Catherina Gionio reports in Fortune:

But Mayor Zohran Mamdani’s pied-à-terre tax—a surcharge for anyone who owns a second home in New York valued at over a certain limit—is effectively acting as an extra tax auditor. The question is simple: are you a New York City resident? Then present your driver’s license or income taxes. Did you happen to file out of state though you lay your head in the five boroughs? Technically, that makes you a non-resident—and someone defrauding the city, per the Department of Finance (DOF).

The DOF has quietly audited residency status for years through the STAR exemption and the Senior Citizen Homeowners’ Exemption, both of which require a property to be the owner’s actual primary residence, and both of which have turned up real fraud when checked. One Comptroller’s audit alone found the DOF had improperly granted the senior exemption to properties whose owners had died and to corporations that were never eligible, a loss of at least $59.2 million over five years. The pied-à-terre tax flips that same question around: instead of catching people wrongly claiming a primary-residence break, it catches properties wrongly claimed as non-primary, to avoid the surcharge.

What we’re describing here is rate evasion, or “garage fraud,” a recognized form of insurance fraud nationally, not just a New York quirk. Insurers price premiums based on a car’s garaging ZIP code, since accident and theft risk vary sharply by density, creating a built-in incentive to register a car at a cheaper address than where it’s actually kept. A 2011 New York State Independent Democratic Conference paper on the practice found it goes well beyond individual drivers fudging an address: it documented organized rings registering dozens of vehicles at a single out-of-state address, then buying and reselling cheap out-of-state policies in bulk.

There’s bad news in the combination of these two situations. In the first, if you’re poor, you want to be a resident of New York because you may benefit from the city’s subsidies. If you’re wealthy, you’re punished for not being from New York with additional taxation, or you’re punished for being from New York with higher insurance rates.

Action Line: It’s too much for many New Yorkers, and for many residents of the big blue blob cities around the country that treat their wealthiest the same way. Many have begun looking for alternatives. If you’re looking for a better America, begin your search here with Your Survival Guy’s 2026 Super States, and click here to subscribe to my free monthly Survive & Thrive letter.

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E.J. Smith - Your Survival Guy
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.