The Mamdani administration is skipping a City Council hearing set for Tuesday on the pied-à-terre tax, a move coming under fire from local reps as it allows officials to dodge critical questions about the controversial surcharge.
Councilmember Gale Brewer, who chairs one of the committees holding the hearing, called the administration’s move not to testify “very unfortunate.” She has a list of questions for the administration that’s “about 5 pages long,” and she intends to still ask them at the hearing, before sending the list to the Department of Finance and the Tax Commission, she said.
“I do feel strongly it’s a mistake on their part,” Brewer, who represents the Upper West Side, said. “I don’t see why they couldn’t testify even with the litigation, because I would assume there are some questions they could answer, maybe some they could not.”
A Mamdani spokesperson cited a pending lawsuit as the reason for the no-show. The mayor himself is out of town this week, vacationing in upstate New York.
“Given the ongoing litigation, our administration has decided to submit written testimony to the City Council tomorrow for its hearing on the pied-à-terre surcharge,” Matt Rauschenbach, a Mamdani spokesperson, said in a statement on Monday.
“From the beginning, we have been clear that the pied-à-terre surcharge is an important source of revenue for our city. This revenue is essential to funding safer streets, cleaner parks and other critical investments that New Yorkers across all five boroughs deserve.”
The hearing, held by the Committee on Finance and the Committee on Governmental Operations, is slated for Tuesday afternoon. The surcharge was passed in the state budget but is administered by the city. It applies to second homes valued at $5 million or more and co-ops of $1 million or more.
It is not uncommon for mayoral administrations to testify before the Council despite ongoing litigation.
In 2023, Department of Social Services officials went before the Council to testify about the administration’s slow rate of processing food stamp applications — while facing a lawsuit on the issue. And in 2017, city officials testified on the antiquated “Cabaret Law” which banned dancing at the vast majority of bars and restaurants in New York City, despite facing a lawsuit on the law.
Still, it’s also not the first time an administration has skipped a hearing citing litigation: Under former Mayor Eric Adams, the NYPD did not testify at a hearing on a controversial arm of the department in 2023, sparking huge outrage from the Council.
“Many Council Members raised concerns and requested a hearing on this issue. Council Members Brewer and Lee, who chair the relevant committees, are co-chairing tomorrow’s hearing,” Council spokesperson Henry Robins said.
A trio of upset homeowners filed a lawsuit against the city over its publication of a massive tax roll that noted some of the properties listed could be subject to the tax.
The list of nearly 1 million properties was not indicative of who would be taxed. The city sent letters to around 17,000 individuals who’d been identified as second-homeowners subject to the surcharge. Homeowners can apply for an exemption from the tax by claiming they, a family member or tenant lives in the home.
The Department of Finance, which administers the program, has received around 4,000 appeals, according to an affidavit filed by the DOF’s general counsel last week.
While a Staten Island judge placed a temporary restraining order on the rollout of the tax, a state appeals court judge ruled last week that the city can continue implementing the tax.