City Hall is extending the deadline for New Yorkers seeking an exemption to the highly controversial — and much maligned —pied-à-terre tax law, Mayor Mamdani announced Saturday.
Now, New Yorkers with second 1, 2 and 3-family houses valued over $5 million and condos and co-ops valued over $1 million facing an additional property surcharge have until Sept. 18 to apply for an exemption.
Mamdani said the applications are available to anyone who received a “You may be subject to…” notice from the Department of Finance, but believes they’re exempt from paying the new tax because they live full-time in the city or for any other reason.
Since the new tax was created, many New Yorkers claim the city’s property rolls are out of date and properties that were once considered a second home are now their primary residence.
“The pied-à-terre tax is an important new tool to help our city collect the revenue we need for safer streets, cleaner parks, and other critical investments across the five boroughs,” Mayor Mamdani said Saturday. “We are announcing the extension of the exemption application deadline to ensure that New Yorkers who received the ‘You may be subject to…’ letters have the time and information they need.”
Since the new law was enacted, about 17,000 New York City homeowners have been notified they may be subject to the additional tax. Yet some say they live full-time in the city and shouldn’t have to pay.
Gov. Hochul, who passed the pied-à-terre tax as part of the state budget, had previously said the surcharge was expected to impact 13,000 units in the five boroughs.
The tax is estimated to rake in $500 million per year.
City residents told other outlets they’d received letters saying they may have to pay thousands more in property taxes despite being full-time New Yorkers.
A Department of Finance spokesperson acknowledged that the 17,000 number could notch lower as some people verify that they do, in fact, primarily live in New York City.
The new tax comes as the DOF released a list of property tax rolls with over 900,000 listings including property owners and market values, which quickly drew backlash from city property owners who thought that they were now facing additional surcharges.
“This roll includes, but is not limited to, those properties that may be subject to the surcharge,” the list, posted online, read — generating confusion about whether the second home tax would be incorrectly applied more broadly.
“The tax property roll that was posted last week is a reflection of all properties across New York City, not a reflection of those, specifically, that the pied-à-terre tax will be levied upon,” Mamdani said Wednesday.
The bills are scheduled to be issued in November, with payment deadlines in January.
Anyone wishing to fill out an exemption application can visit nyc.gov/npsurcharge.