New York City Issues Second Wave of Pied-à-Terre Tax Notices

The New York City Department of Finance is issuing a second wave of tax notices to approximately 10,800 property owners regarding a pied-à-terre surcharge on non-primary residences. This follows an initial mailing to roughly 17,000 owners. After reviewing 2025 income-tax records provided by New York State, the city has cleared 1,210 of those original recipients.

The surcharge targets high-value properties, applying a rate of 0.8% to 1.3% for homes over $5 million and 4% to 6.5% for condos or co-ops over $1 million. Property owners have until October 6 to file for exemptions, with the option to appeal through the tax commission into early next year.

The implementation has drawn significant criticism. Attorney Randy Mastro filed a lawsuit against the city, arguing that officials should have obtained tax data before sending what he described as threatening notices. Governor Kathy Hochul, who signed the tax into law, stated she "wasn’t a fan of the rollout." Despite the controversy, Mayor Zohran Mamdani defended the city's revenue targets and the assessment of annual revenue.