{"id":330599,"date":"2026-08-26T23:12:11","date_gmt":"2026-08-26T23:12:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/330599\/"},"modified":"2026-08-26T23:12:11","modified_gmt":"2026-08-26T23:12:11","slug":"mamdani-insists-pied-a-terre-tax-will-raise-500m-as-nyc-winnows-properties-getting-hit","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/330599\/","title":{"rendered":"Mamdani insists pied-\u00e0-terre tax will raise $500M as NYC winnows properties getting hit"},"content":{"rendered":"

Mayor Zohran Mamdani stubbornly insisted the Big Apple will still collect $500 million through the new pied-\u00e0-terre tax<\/a> \u2014 despite his own officials slashing the number of properties that could be hit with the levy by 4,000.<\/p>\n

\u201cWe continue to be confident in that assessment of what the annual revenue will look like,\u201d Mamdani told reporters Wednesday.<\/p>\n

Hizzoner\u2019s sunny assertion came after the city said Department of Finance officials would send out new notices<\/a> to 10,800 property owners who needed to prove New York City was their primary residence.<\/p>\n

Mayor Zohran Mamdani insisted Wednesday that the city\u2019s pied-\u00e0-terre tax will raise $500 million. Stephen Yang for NY Post<\/p>\n

The tally is far below the 17,000 notices DOF initially sent out as the city first rolled out the tax on luxury second homes late last month.<\/p>\n

The troubled launch has prompted mass confusion and a high-profile lawsuit<\/a> \u2014 which itself led to court filings Tuesday in which city officials revealed the reduced number of notices and again extended the deadline for recipients to file for exemptions.<\/p>\n

The uncertainty over how many properties would actually qualify under the levy raised questions over whether it\u2019ll raise its promised $500 million, said Jared Walczak, a senior fellow with the Tax Foundation.<\/p>\n

\u201cWhen you have a tax base that starts with 17,000 and continues removing properties by the thousands, there is every reason to believe that the estimate is too high and the city based it on incomplete and overreaching assumptions,\u201d he said.<\/p>\n

Gov. Kathy Hochul\u2019s office has estimated the tax will hit 10,000 luxury second homes. Darren McGee\/ Office of Governor Kathy Hochul<\/p>\n

\u201cThis is doable \u2014 they could do a new estimate with knowledge of homes that come off the rolls. It\u2019s not a hard calculation to make.\u201d\u00a0<\/p>\n

The pied-\u00e0-terre surcharge arose as Mamdani pushed Gov. Kathy Hochul and Albany lawmakers to pass a slew of \u201ctax the rich\u201d measures.<\/p>\n

Hochul largely held firm against soaking the wealthy with new taxes, but worked with the legislature to pass the pied-\u00e0-terre as a way to buoy New York City\u2019s shaky finances.<\/p>\n

Here\u2019s the latest drama on Zohran Mamdani\u2019s pied-\u00e0-terre tax rollout:<\/p>\n

Under the law, the tax applies to one- to three -family homes worth at least $5 million and co-ops and condos valued at $1 million or more that are unoccupied, non-primary residences.<\/p>\n

As Hochul pitched the tax during the spring, her office estimated it would apply to roughly 10,000 homes within the city<\/a> and raise $500 million a year.<\/p>\n

But an analysis by City Comptroller Mark Levine in April cast doubt on the rosy revenue<\/a> estimate.<\/p>\n

The tax applies to luxury second homes, but the city has struggled to pinpoint exactly how many. Christopher Sadowski for NY Post<\/p>\n

He instead found the surcharge would likely bring in closer to $340 to $380 million, with roughly 11,000 properties qualifying.<\/p>\n

But Hochul and Mamdani stood firm that the levy would raise the promised $500 million a year.<\/p>\n

Asked about the revised number of potentially eligible properties, Mamdani said the original batch of 17,000 notices went out before the city had access to 2025\u2019s income tax filings.<\/p>\n

\u201cThat is something that is typically released in February of the next calendar year,\u201d he said. \u201cThe state has now provided us with early access to those filings.\u201d<\/p>\n

The smaller batch of new letters went out based on the updated tax information, Mamdani said.<\/p>\n

Hochul, meanwhile, has largely tried to stay away from the mess unfolding in New York City, arguing the tax\u2019s rollout is up to Mamdani.<\/p>\n

The governor also noted Wednesday she was \u201cnot interested\u201d in entertaining a proposal by upstate Dems to allow their municipalities to tax ritzy second homes, too.<\/p>\n

\u00a0\u201cI\u2019m not interested in seeing it rolled out upstate. This was specifically intended to help the City of New York get through a financial crisis,\u201d she told reporters after an unrelated event.<\/p>\n

\u2014 Additional reporting by Vaughn Golden<\/p>\n","protected":false},"excerpt":{"rendered":"Mayor Zohran Mamdani stubbornly insisted the Big Apple will still collect $500 million through the new pied-\u00e0-terre tax…\n","protected":false},"author":2,"featured_media":330600,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[39014,57,9,56,63,65,64,79763,7754,58,82],"class_list":["post-330599","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-department-of-finance","tag-metro","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news","tag-pied-a-terre","tag-property-taxes","tag-us-news","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/330599","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=330599"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/330599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/330600"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=330599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=330599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=330599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}