{"id":311814,"date":"2026-08-02T07:01:08","date_gmt":"2026-08-02T07:01:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/311814\/"},"modified":"2026-08-02T07:01:08","modified_gmt":"2026-08-02T07:01:08","slug":"bill-ackman-warns-nyc-pied-a-terre-tax-could-hurt-property-values","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/311814\/","title":{"rendered":"Bill Ackman Warns NYC Pied-\u00e0-Terre Tax Could Hurt Property Values"},"content":{"rendered":"<p class=\"block core-block\">Billionaire investor Bill Ackman is pushing back on New York City\u2019s pied-\u00e0-terre tax, arguing the levy will backfire by shrinking property values and tax revenue rather than boosting city coffers.<\/p>\n<p>Cap Rate Math Points to Steep Value Losses<\/p>\n<p class=\"block core-block\">In an X post on Saturday, the Pershing Square Capital Management CEO argued that a taxed home\u2019s value will decline in proportion to the capitalized cost of the new levy.<\/p>\n<p class=\"block core-block\">Ackman noted the 5% surcharge on assessed property value equals roughly 0.3% to 0.75% of a home\u2019s market value. Based on a 4% capitalization rate, he estimated that property values across the city, along with related tax revenue, could fall by 7.5% to 18.75%.<\/p>\n<p class=\"block core-block\">Ackman has been a vocal critic of the proposal from the beginning, warning that the policy could create unintended consequences for New York\u2019s housing market and long-term tax base.<\/p>\n<p>$500 Million Revenue Target\u00a0<\/p>\n<p class=\"block core-block\">According to Gov. Kathy Hochul, the <a href=\"https:\/\/www.benzinga.com\/news\/politics\/26\/05\/52442126\/new-yorks-wealthy-push-back-against-mamdanis-proposed-second-home-tax\" target=\"_blank\" rel=\"nofollow noopener\">levy would hit roughly 13,000 properties, or 0.4% of city housing<\/a> and could raise about $500 million annually.<\/p>\n<p class=\"block core-block\">The proposal has also faced privacy concerns over a <a href=\"https:\/\/www.benzinga.com\/real-estate\/26\/07\/60788192\/mamdani-searchable-property-database-pied-a-terre-tax-privacy-backlash\" target=\"_blank\" rel=\"nofollow noopener\">city property database listing roughly 960,000 properties<\/a>, though officials say only about 31,000 properties meet the valuation threshold for the tax.<\/p>\n<p class=\"block core-block\">Real estate taxes generated $39.6 billion in 2025, nearly half of the city\u2019s local tax revenue, according to the Real Estate Board of New York <a href=\"https:\/\/www.rebny.com\/reports\/the-invisible-engine-2026\/\" target=\"_blank\" rel=\"nofollow noopener\">report<\/a>. The tax is projected to raise about $500 million annually, with the exemption-application deadline extended to Sep. 18.<\/p>\n<p class=\"block core-block\">The tax aims to close budget gaps, support essential public services, and ensure that wealthy non-resident owners of luxury second homes contribute their fair share to the city.<\/p>\n<p class=\"block core-block\">Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.<\/p>\n<p class=\"block core-block\">Photo courtesy: Shutterstock<\/p>\n","protected":false},"excerpt":{"rendered":"Billionaire investor Bill Ackman is pushing back on New York City\u2019s pied-\u00e0-terre tax, arguing the levy will backfire&hellip;\n","protected":false},"author":2,"featured_media":311815,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[117926,117927,93413,21650,80240,117928,21643,9,24,55,54,56,21642,117929,117932,117930,117931,80242],"class_list":["post-311814","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-category-economics","tag-category-financing","tag-category-government","tag-category-markets","tag-category-politics","tag-category-treasuries","tag-cms-wordpress","tag-new-york","tag-new-york-city","tag-new-york-city-headlines","tag-new-york-city-news","tag-ny","tag-pageisbzpro-bz","tag-tag-bill-ackman","tag-tag-kathy-hochul","tag-tag-ken-griffin","tag-tag-pershing-square-capital-management","tag-tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/311814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=311814"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/311814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/311815"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=311814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=311814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=311814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}