{"id":734633,"date":"2026-06-30T10:29:20","date_gmt":"2026-06-30T10:29:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/734633\/"},"modified":"2026-06-30T10:29:20","modified_gmt":"2026-06-30T10:29:20","slug":"nyc-sending-out-first-pied-a-terre-tax-notices-to-owners-of-luxury-second-homes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/734633\/","title":{"rendered":"NYC sending out first pied-\u00e0-terre tax notices to owners of luxury second homes"},"content":{"rendered":"

The Mamdani administration has unveiled rules for how the city\u2019s new pied-\u00e0-terre tax\u00a0<\/a>will be enforced \u2014 with the first surcharge notices going out in the coming weeks, The Post has learned.<\/p>\n

The city Department of Finance will let owners of thousands of luxury secondary residences know they\u2019ve been deemed eligible for the tax by August 30, according to the newly published proposed guidelines<\/a>.<\/p>\n

The DOF has subpoena power and can conduct audits going back six years to determine whether a property should be taxed or exempt.<\/p>\n

Mayor Zohran Mamdani\u2019s administration unveiled rules for the city\u2019s new pied-\u00e0-terre tax. Getty Images<\/p>\n

One-to-3 family homes worth at least $5 million and co-ops and condominiums valued at $1 million or more \u2014 that are unoccupied, non-primary residences \u2014 would be subject to the surcharge<\/a>, approved by the state Legislature.<\/p>\n

The DOF has subpoena power and can conduct audits going back six years to determine whether a property should be taxed or exempt.<\/p>\n

And it can impose a fine equal to 50% of the pied-\u00e0-terre tax bill for providing false, inaccurate or misleading information \u2014 in a bid to crack down on \u201cgamesmanship\u201d by owners seeking to avoid the levy, according to the rules.<\/p>\n

The city particularly highlighted as an example, \u201ca condominium property [that] has been divided into more than three units to avoid application of the surcharge and such division was made in bad faith.\u201d<\/p>\n

\u201cThis provision would promote compliance with the surcharge by increasing the potential cost of evasion by property owners while ensuring that such property owners are afforded an opportunity to challenge the imposition of such penalties,\u201d the regulation states.<\/p>\n

The Department of Finance (DOF) has subpoena power, can audit six years back and fine owners 50% for false info. Christopher Sadowski for NY Post<\/p>\n

City officials estimate the pied-\u00e0-terre tax will generate between $340 million and $500 million in annual revenue from approximately 10,000 luxury second homes. Paul Martinka<\/p>\n

Owners will have 30 days to appeal or challenge the new tax bill imposed on non-primary residences. Appeals would be made to the city\u2019s Tax Commission, or in some cases to the DOF.<\/p>\n

The surcharge \u2014 part of Mayor Zohran Mamdani and his Democratic Socialists of America comrades\u2019 \u201ctax the rich\u201d crusade<\/a> \u2014 aims to target wealthy people who don\u2019t live in New York City, but own residential property here that sits unoccupied.<\/p>\n

City officials estimate the pied-\u00e0-terre tax will generate between $340 million and $500 million<\/a> in annual revenue from approximately 10,000 luxury second homes.<\/p>\n

One-to-three family homes will be taxed at a rate of between 0.8% to 1.3% depending on their value, while the rate for co-ops and condos starts at 4% and goes up to 6.5% for those worth over $5 million.<\/p>\n

Co-ops and condos are believed to be undervalued, based on the city\u2019s property value assessment system, so the higher rate of tax will allow the city to collect more revenue from them, real estate insiders said. <\/p>\n

Billionaire Citadel CEO Ken Griffin\u2019s city property tax bill could jump $1.3M to $1.4M under the new tax. REUTERS<\/p>\n

The DOF is expected to recalculate their value in two years, as part of \u201cphase two\u201d of the tax, which will lapse in 2031 unless the Legislature renews it.<\/p>\n

The real estate industry has long opposed the pied-\u00e0-terre tax, citing complexity in determining who is covered and collecting it \u2014 and insiders said there are sure to be lawsuits contesting the mandate.<\/p>\n

Real estate sources note the new tax would be a headache for co-op boards <\/a>responsible for helping collect the surcharge from a shareholder or owner of an apartment in the building.<\/p>\n

\u201cThe Department of Finance\u2019s proposed rules highlight the serious challenges of implementing the second-home tax fairly,\u201d said Zachary Steinberg, executive vice president of external relations & advocacy at the Real Estate Board of New York.<\/p>\n

New York City Mayor Zohran Mamdani displays a T-shirt featuring the candidates he supports. Luiz C. Ribeiro for NY Post<\/p>\n

\u201cAs the City rushes to roll out this new tax, many New Yorkers\u2014particularly cooperative apartment owners who were never intended to be affected\u2014may be hit with unexpected tax bills and little time to appeal,\u201d the REBNY rep added.<\/p>\n

The rules go into effect after the public comment period closes July 9.<\/p>\n

Most comments thus far favor the pied-a-terre tax, but there are naysayers.<\/p>\n

\u201cCommunism at its finest. This law will ensure that anyone with a second home here will be driven out of NYC if they have not already left. You are chasing your tax bases away,\u201d one anonymous response said.<\/p>\n

But Mohamed Fathelbab, a licensed real estate agent said, \u201cI\u2019m telling you all, this tax will not chase a single multimillionaire or billionaire away from the city. And the revenue that\u2019ll come in will be of great benefit.\u201d<\/p>\n

Billionaire hedge fund honcho Ken Griffin\u2019s<\/a> city property tax bill is reportedly estimated to go up about $1.3 to $1.4 million under the new tax, approved by Gov. Kathy Hochul <\/a>and Albany lawmakers at the behest of Mamdani to help fill city coffers.<\/p>\n

The democratic socialist Mamdani caused a stir when he singled out the Citadel founder\u2019s penthouse <\/a>as eligible for the tax in a viral video filmed outside the residence.<\/p>\n","protected":false},"excerpt":{"rendered":"The Mamdani administration has unveiled rules for how the city\u2019s new pied-\u00e0-terre tax\u00a0will be enforced \u2014 with the…\n","protected":false},"author":2,"featured_media":734634,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,26189,316172,28861,92803,5871,111,75316,75753,194,10766],"class_list":["post-734633","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-city-budget","tag-department-of-finance","tag-kathy-hochul","tag-ken-griffin","tag-metro","tag-politics","tag-property-taxes","tag-state-budget","tag-us-news","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/734633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=734633"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/734633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/734634"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=734633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=734633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=734633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}