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NYC begins sending pied-a-terre surcharge notices to high-value owners
The notices cover Phase 1 properties, including one- to three-family homes valued at $5 million or more, and owners have 30 days to challenge their designation before bills in November.
New York City’s Department of Finance has started mailing notices to owners potentially subject to the city’s pied-a-terre surcharge, with Phase 1 aimed at select high-value homes, condos, and co-ops. Mayor Zohran Mamdani said on social media that owners should check their mail after the letters began landing before the weekend.
Phase 1 includes one- to three-family homes valued at $5 million or more, as well as condos and co-ops valued at $1 million or more. The surcharge rates range from 0.8% up to 6.5% depending on property type and value tier, and recipients have 30 days to challenge or appeal their designation.
Formal bills are expected to follow in November, after the challenge period. HousingWire reports that tax attorneys and accountants are preparing to help owners respond, and that legal action may follow, citing an attorney at Holland and Knight who expects lawsuits.
The rollout also lands amid political controversy, HousingWire reports, after Mamdani promoted the tax with a video filmed outside billionaire Ken Griffin’s Manhattan penthouse. The story also notes that brokers say the notices are arriving as luxury sales remain jittery, with Olshan Realty data showing only one Manhattan property priced above $10 million went into contract in the July 6 to July 12 period.