Zohran Mamdani's 'millionaire home tax' exposes New York's 'ghost cars' issue

The proposed millionaire home tax in New York City has drawn attention to a long-standing issue of residency claims and "ghost cars." This practice involves registering vehicles in lower-cost states while actually living and driving in New York. The mayor's proposal would require owners of high-value secondary residences to establish their primary home status by providing documents such as state tax filings or driver's licence records.

This residency information could uncover discrepancies in which individuals claim residency outside New York while actually residing in the city and keeping a vehicle there.

Investigations have revealed that vehicles registered outside New York, New Jersey, Connecticut, and Pennsylvania received traffic or parking violations in every quarter, suggesting many are driven in New York year-round despite being registered elsewhere. Vehicles with mismatched or no-plate plates owed significantly more fines and paid a much lower percentage than those with valid registrations. They also had more school-zone speeding camera violations and fire hydrant violations.

Online marketplaces offer replica licence plates, expired government-issued plates, and out-of-state registration services, making it easier to obtain fraudulent registrations. This issue extends beyond the United States, as Italy and France have also grappled with similar registration schemes to reduce insurance costs, avoid taxes, or evade enforcement.