NEW YORK CITY (WABC) — A Staten Island judge is scheduled to hear arguments Monday afternoon in a lawsuit challenging the city’s rollout of the pied-\u00e0-terre tax, which targets wealthy New Yorkers who own second homes valued at more than $5 million.<\/p>\n
The tax is expected to affect New York City residents with qualifying second homes and is intended to help improve the city’s budget by raising $500 million.<\/p>\n
The plan initially was expected to impact about 17,000 residents. However, that figure was later reduced to 10,800 property owners following a review and the release of state tax documents that provided a clearer picture of who would be subject to the tax.<\/p>\n
State officials said they had always estimated the tax would affect this group of homeowners.<\/p>\n
Gov. Kathy Hochul addressed the revised figures, saying: “So the larger number that was in the news was a different dynamic. I’ll say. What they are talking about is getting down to what we actually projected. we don’t see that there’ll be a loss in revenue from what we expect to bring in, because we’ve always been estimating at 10,000. them scaling it back will not have the effect that people are concerned about.”<\/p>\n
By the end of Monday, 10,800 property owners are expected to receive notifications if they qualify to be taxed under the program.<\/p>\n
The court hearing is scheduled for 2:15 p.m. Monday in Staten Island.<\/p>\n
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