NYC extends pied-à-terre tax deadline to Oct. 6 as thousands win appeals
NEW YORK CITY (WABC) -- More than 1,200 property owners initially flagged for New York City's new pied-à-terre tax are actually city residents and not subject to the surcharge, the Mamdani administration said in new court filings defending the rollout.
The filing states the city has established residency for 1,210 property owners who were originally notified they could be subject to the tax. Officials have also approved appeals from 2,892 property owners, while another 2,652 appeals remain under review.
The city is now sending new notices to 10,800 property owners based on 2025 state tax data, informing them they must prove the property is their primary residence to avoid paying the surcharge. Those letters are expected to be mailed by Aug. 31. The deadline to submit proof of residency has been extended a second time, to Oct. 6, after an earlier move from late August to Sept. 18.
The new details were disclosed in a court filing as the city seeks to fend off a lawsuit challenging its implementation of the tax on luxury second homes worth more than $5 million. The rollout has drawn criticism from property owners and elected officials, including Gov. Kathy Hochul, who recently said she "wasn't a fan of the rollout" and that City Hall was working to correct problems.
In the filing, the city defended its decision to require homeowners to prove residency, arguing that the process was built into the law. Attorneys for the city wrote that what plaintiffs describe as improper burden-shifting is "actually an intentional design of the law" and that property owners may find the process burdensome, but that "does not make it illegal."
Officials also said they have taken steps to address confusion after publishing an initial list of roughly 900,000 properties that could potentially be subject to the tax. The city added language to its website this week clarifying that most of those properties will not ultimately owe the surcharge. After publishing the broader list, the Department of Finance mailed notices to about 17,000 property owners directing them to prove their homes were primary residences if they wished to avoid the tax.
Randy Mastro, an attorney representing the plaintiffs, argued the city should have reviewed state tax data before sending the notices. He called the latest filing "an admission of a massive screw-up" and accused the administration of forcing thousands of homeowners to prove they live in their own homes rather than determining eligibility beforehand.
Oral arguments in the case are scheduled for Aug. 31.
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