NYC Council To Hear From Pied-à-Terre Owners After Tax Rollout Backlash

UPPER EAST SIDE, NY — New York City Council members will hear from pied-à-terre owners Tuesday as they scrutinize the embattled rollout of a new annual surcharge on second homes.

The oversight hearing comes after the City's Department of Finance mailed notices to approximately 17,000 property owners in the five boroughs warning that their properties "may be subject" to the surcharge.

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The tax applies to qualifying non-primary residences with market values of at least $5 million for one-, two- and three-family homes and $1 million for condominium and cooperative apartments.

Mayor Zohran Mamdani and Governor Kathy Hochul estimate the surcharge could generate as much as $500 million for New York City.

"If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker," Hochul said.

Meanwhile, the Department of Finance also published a list of thousands of addresses that may be subject to the new tax, spurring criticism against the administration's handling of the rollout.

"Usually, with a major initiative like this, the city agency responsible would brief council members in advance, and publish a guide/FAQ for the public. That did not happen," Councilmember Gale Brewer wrote to her Upper West Side constituents. "The short notice, in the depth of summer, when people are traveling or at summer homes is a burden for many."

On Aug. 10, a Staten Island judge ordered New York City to pause its rollout of the new surcharge, temporarily blocking the City from sending additional notices, after three homeowners sued the city, questioning the legality of the rollout.

The order to pause the rollout was lifted on Aug. 13 while the legal challenge proceeds in court.

The oversight hearing for the pied-à-terre tax is hosted by the Committee on Governmental Operations, which Brewer chairs, and the Committee on Finance, and begins at 1 p.m. at City Hall and on Zoom.

The flyer for the hearing reads, "Have you recently received a letter about the new pied-à-terre tax? The council wants to hear from you."

Property owners who received a letter from the Department of Finance about the new surcharge but believe they are exempt can apply for an exemption by Sept. 18 here.

For questions, email Miranda.Levingston@Patch.com.