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New York mails pied-a-terre surcharge notices to certain high-value owners
Phase 1 covers one-to-three-family homes worth $5 million or more and condos or co-ops worth $1 million or more, with owners given 30 days to challenge their designation.
Notices from New York City’s Department of Finance are reaching owners potentially subject to the city’s pied-a-terre surcharge, with Phase 1 homeowners and co-op or condo holders beginning a 30-day window to challenge their designation before formal bills follow in November, HousingWire reports. Mayor Zohran Mamdani announced the outreach in social media posts, saying owners of second homes in New York City worth at least $5 million should check their mail because “you’ve got mail.” The notices cover select high value one-to-three-family homes valued at $5 million or more, plus condos and co-ops valued at $1 million or more. Rates in Phase 1 run from 0.8% up to 6.5%, depending on property type and value tier. Attorneys expect legal challenges, and HousingWire reports that a lawyer said lawsuits could emerge over the tax. The filing also arrives amid heightened controversy around the surcharge, after Mamdani promoted it in a video filmed outside billionaire Ken Griffin’s roughly $240 million Manhattan penthouse, and Griffin criticized the video and threatened to pull business and jobs from the city. Brokers say the notices are landing on top of a jittery luxury market, where Olshan Realty Inc. reported only a single Manhattan property priced above $10 million went into contract from July 6 to July 12, the lowest week for trophy sales since the last week in December.