{"id":366458,"date":"2026-10-07T01:52:11","date_gmt":"2026-10-07T01:52:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/366458\/"},"modified":"2026-10-07T01:52:11","modified_gmt":"2026-10-07T01:52:11","slug":"nyc-pied-a-terre-tax-exemptions-mount-as-mamdani-again-moves-deadline","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/366458\/","title":{"rendered":"NYC Pied-\u00e0-Terre Tax Exemptions Mount as Mamdani Again Moves Deadline"},"content":{"rendered":"

The Mamdani administration has again extended the deadline to seek an exemption from the city\u2019s new pied-\u00e0-terre tax<\/a>, moving it from Tuesday to Oct. 17 as officials released data showing more than half the exemption requests sought by property owners so far have been granted.<\/p>\n

As of Tuesday around 9,300 applications had been received by the city Department of Finance, of which more than 5,200 properties have been deemed primary residences by the agency and therefore exempt from the tax. That\u2019s a success rate of 55%.<\/p>\n

An analysis by The City Reporter found that more than 6,400 of the 17,000 properties the city initially tagged as likely subject to the surcharge \u2014 nearly 40% \u2014 have since been found to be primary residences exempt from the tax. A property is exempt when the owner can demonstrate that it\u2019s their own primary residence or that of a full-time tenant or a close relative.<\/p>\n

\"TheMore than 6,400 of the 17,000 properties the city initially tagged as likely subject to the new pied-\u00e0-terre tax \u2014 nearly 40% \u2014 have since been found to be exempt from the tax. Credit: Alex Krales\/The City Reporter<\/p>\n

Jae Ko, a spokesperson for the finance department, said the city decided to extend the filing deadline in response to a lawsuit filed by attorney Randy Mastro, a former top city official, that persuaded a judge to order a halt to the rollout<\/a> of the new tax.<\/p>\n

That lawsuit and two others pending in a Long Island court contesting the constitutionality of the surcharge on luxury second homes have \u201ccreated a lot of unnecessary confusion,\u201d Ko said, and the extension will ensure \u201cthat New Yorkers have the time and information they need to apply.\u201d<\/p>\n

\u201cWhile this legal process moves forward, we will continue administering the surcharge fairly, efficiently and in full compliance with the law, as we have done from day one,\u201d he added.<\/p>\n

This greatly diminished pool of eligible properties raises questions about Mayor Zohran Mamdani\u2019s<\/a> repeated claim that the second home surcharge will raise $500 million to help close the city\u2019s projected $5 billion budget gap.<\/p>\n

The Department of Finance is still processing exemption applications from another 4,000 owners. With the new extension, the final tally won\u2019t be known for another week.\u00a0<\/p>\n

The tax, approved by the state legislature and signed by Gov. Kathy Hochul<\/a> in May, targets one-, two- and three-family homes with what the Department of Finance determines have a \u201cmarket value\u201d of at least $5 million or condos and coops with a \u201cmarket value\u201d of $1 million or more that are not the owners\u2019 primary residence. At the time, Hochul estimated the tax would raise $500 million from 13,000 homes (she didn\u2019t factor in co-ops and condos).<\/p>\n

City Comptroller Mark Levine<\/a> then did his own analysis and found the city could raise $500 million from 11,200 properties. But he acknowledged that number would drop to between $340 million and $380 million once exemptions were factored in. On Tuesday a spokesperson for Levine said he has no new revenue estimates.<\/p>\n

Lawsuits Target New Tax<\/p>\n

The administration\u2019s effort to implement the tax has been roundly criticized as haphazard<\/a>, and a lawsuit filed by Mastro \u2014 who served as first deputy mayor under both Eric Adams and Rudy Giuliani \u2014 convinced a state judge on Staten Island last week to order a re-do of the entire process.\u00a0<\/p>\n

The city immediately appealed, and on Monday asked the state appellate division to pause Justice Wayne Ozzi\u2019s order and let the Department of Finance continue to address exemption requests that are still in the pipeline.<\/p>\n

On Monday, Mastro and a lawyer for the city met outside the public\u2019s view in the chambers of Associate Justice William Ford of the state Appellate Division, where Mastro argued the entire process for implementing and ultimately collecting the tax should be put on hold while the city\u2019s appeal is considered. In court papers, Stephanie Teplin, a senior counsel at the city law department, asserted this would create \u201cchaos.\u201d<\/p>\n

\"ProgressiveProgressive advocates rally in front of City Hall ahead of a hearing on the new pied-\u00e0-terre tax, Aug. 18, 2026. Credit: Alex Krales\/The City Reporter<\/p>\n

Ford rejected Mastro\u2019s position and let the Mamdani administration continue collecting the pied-\u00e0-terre tax. The first bills are set to go out Nov. 15 and are due Jan. 1, 2027.<\/p>\n

Lurking in the background are two pending lawsuits \u2014 one filed by casino mogul Steve Wynn and former Trump Commerce Secretary Wilbur Ross<\/a> and another by Mastro on behalf of more modest property owners \u2014 arguing that the tax itself discriminates against out-of-state property owners.<\/p>\n

Those lawsuits remain ongoing.<\/p>\n

\n\tRelated<\/p>\n","protected":false},"excerpt":{"rendered":"The Mamdani administration has again extended the deadline to seek an exemption from the city\u2019s new pied-\u00e0-terre tax,…\n","protected":false},"author":2,"featured_media":366459,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[7739,2954,9,56,63,65,64,1491,2780],"class_list":["post-366458","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-budget","tag-landlords","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news","tag-real-estate","tag-taxes"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/366458","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=366458"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/366458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/366459"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=366458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=366458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=366458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}