>Taxes has no income tax. NYC plus ny state has income tax at close to 10%.

That's as may be, and for residents of NYC that's impactful.

The new law targets second homes, which are generally defined as a residence which is not your primary residence. Meaning that the folks affected are generally not NYC (and often not NY state) residents, so the NYC/NY State income tax is irrelevant, as the folks affected don't pay those income taxes.