Mayor Mamdani says pied-à-terre tax will still net $500 million despite fewer notices

Mayor Zohran Mamdani maintained that the newly introduced pied-à-terre surcharge will still produce $500 million in annual revenue for New York City, despite a significant reduction in the number of properties targeted. The Department of Finance announced it will issue new notices to 10,800 owners, a sharp decline from the 17,000 notices initially dispatched when the tax was first rolled out. This adjustment follows widespread confusion and a prominent lawsuit, which led the city to file court documents revealing the lower notice count and to further extend the deadline for exemption requests.

Critics, including a senior fellow from the Tax Foundation, argue that the original revenue estimate may be overly optimistic given the shrinking tax base. The tax applies to one- to three-family homes valued at $5 million or more and condos or co-ops worth $1 million or more that are not primary residences. Governor Kathy Hochul’s office had earlier estimated the levy would affect roughly 10,000 homes and generate $500 million, and she has distanced herself from the implementation challenges, emphasizing that the measure is intended to aid the city’s finances.