Mamdani backs pied-à-terre tax notices

New York City officials are defending the rollout of a new pied-à-terre tax after 17,000 homeowners received notices warning they may owe thousands in additional property taxes—even though some claim they live in the city full-time.

Mayor Zohran Mamdani stated the early outreach was necessary to ensure only non-primary residences are taxed. “We wanted to conduct outreach months in advance so that exact requirement would be met,” he said at a Wednesday press conference.

The Department of Finance confirmed the 17,000 figure was an initial estimate. That number will likely decrease as homeowners confirm their primary residence status. Gov. Kathy Hochul, who signed the tax into law as part of the state budget, had estimated it would apply to about 13,000 units across the five boroughs.

The surcharge applies to condominiums and co-ops valued over $1 million, as well as one-, two-, and three-family homes worth more than $5 million. City officials expect it to raise $500 million each year, balancing Mamdani’s call for broader tax increases on high earners with Hochul’s resistance to new levies.

Bills will go out in November, with payments due in January. Homeowners who miss the August verification deadline can still appeal to the Tax Commission until March. The finance department hired 13 additional staff this year to manage the rollout, which has faced criticism over its tight schedule and risk of mistakes.

Finance Commissioner Richard Lee admitted the tax’s application to co-ops has caused confusion. “This is unfamiliar territory because of how the surcharge is structured,” he said. The department is contacting co-op owners who received notices to guide them through the process, which Lee noted is more complicated due to shared ownership.

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The public release of property tax rolls, listing over 900,000 entries with owners and market values, has also drawn criticism. While intended to promote transparency, the list raised concerns the tax might be enforced too widely. The document clarified it was not limited to properties subject to the surcharge.

Mamdani explained the list was not a final determination of tax liability. “The tax property roll posted last week includes all properties in New York City, not just those affected by the pied-à-terre tax,” he said.

The city’s decision to send notices well before the tax takes effect may influence how future surcharges are introduced. However, the early confusion shows officials may need to improve communication, particularly for properties with unusual ownership. Homeowners remain uncertain as the first bills are still months away.

Those seeking answers can reach the Department of Finance online or by phone, though the agency has not yet provided detailed instructions for appeals or verification.

The tax arrives as finance executives adopt new tools but struggle with oversight, a challenge city agencies may soon face as they implement complex revenue measures.