The New York City administration announced Tuesday that it has re‑evaluated more than 1,200 property owners originally listed for the city’s new pied‑à‑terre tax and determined they are bona‑fide residents. Because they are not subject to the surcharge, the city will not require them to pay the tax.
Residency determinations and appeal updates
According to court filings, the city has now established residency for 1,210 owners who were initially notified that they could be liable for the tax. In addition, the administration has approved appeals from 2,892 owners, while another 2,652 appeals remain under review.
Extended deadline and new notices
Using 2025 state tax data, the city is preparing to send new notices to roughly 10,800 property owners, asking them to prove that the property in question is their primary residence. The letters are slated for mailing by Aug. 31, and the deadline to submit proof of residency has been extended to Oct. 6, after previously moving from late August to Sept. 18.
Legal challenge and city’s defense
The filings come as the city defends the tax’s rollout in a lawsuit that challenges the implementation of the surcharge on luxury second homes valued over $5 million. Governor Kathy Hochul, a Democrat, recently expressed criticism of the rollout, saying she “wasn’t a fan of the rollout” and that City Hall was working to correct problems.
City attorneys argue that the requirement for homeowners to prove residency is expressly built into the law. They acknowledge that plaintiffs describe the process as a “burden‑shifting” measure, but maintain that it is an intentional design of the statute and not illegal.
Efforts to clarify the tax’s scope
After publishing an initial list of roughly 900,000 properties that could potentially be subject to the tax, the Department of Finance added clarifying language to its website, noting that most of those properties will ultimately not owe the surcharge. The department also mailed notices to about 17,000 owners, directing them to demonstrate primary‑residence status if they wish to avoid the tax.
Plaintiff attorney Randy Mastro criticized the city for sending the notices before reviewing state tax data, calling the latest filing “an admission of a massive screw‑up” and accusing the administration of forcing thousands of homeowners to prove they live in their own homes rather than determining eligibility beforehand.
Next steps
Oral arguments in the case are scheduled for Aug. 31. The city says it will continue to process appeals and work with residents to ensure the tax is applied fairly and in accordance with the law.
Original reporting: Brookhaven News – ABC7 New York — read the source article.
