Around 2,000 people have filed for an exemption to the NYC pied-à-terre tax — and 4,800 more have at least started the process amid the new levy’s controversial rollout, City Hall said Monday.
The city sent roughly 17,000 homeowners letters to warn them they may be subject to the new tax, which puts a surcharge on pricey second homes in the five boroughs, though a number of those who received letters complained they were full-time city residents. Amid the confusion, Mayor Mamdani announced over the weekend the city is extending the deadline to apply for an exemption by a month, with the deadline now Sept. 18.
The bills are scheduled to be issued in November, with payment deadlines in January. If homeowners miss the September deadline, they have until March to appeal with the Tax Commission.
To be exempt from the tax, either the homeowner, a tenant or an immediate family member must reside in the unit.
The rollout of the tax has been bumpy.
The Department of Finance posted a database of nearly 1 million properties, noting that some of those properties “may be subject” to the new tax — leading to some confusion and anger. City officials stressed that that information was already in public records and that the property tax roll was was published in accordance with the state law.
“I understand the concerns New Yorkers have, especially when it comes to a new tax, and as we know, new taxes typically present more questions than they do answers,” Mamdani said Monday at a press conference in the Bronx.
“I do also want to state that there has been both a willful and an unintentional conflation of both the property tax roll and these letters.”
The tax will apply to homes valued at $5 million or more and co-ops and condos valued at $1 million or more.
Gov. Hochul had originally estimated the tax would likely apply to 13,000 households and raise $500 million for the city annually.
To manage the rollout of the tax, which was passed by the state in this year’s budget, City Hall has added 24 new positions across the Department of Finance and the Office of Administrative Trials and Hearings.