New York City has begun implementing its controversial pied-à-terre tax, sending notification letters to property owners who might be affected. The tax applies annually to one to three-family homes, condominiums, and co-ops valued above $5 million, provided the owners have a separate primary residence outside New York City. This progressive tax starts at 0.8% and can increase to 1.3% for properties valued at $25 million or more. The city projects this tax will generate $500 million in annual revenue, impacting over 11,000 homes, and has launched a dedicated website and hired 24 new staff within the Department of Finance to support its implementation.
Mayor Zohran Mamdani, a key proponent of the tax, announced the dispatch of these notification letters, stating on social media, "Today, we sent notification letters to property owners, letting them know that our new pied-a-terre tax is coming soon." He had previously campaigned on taxing wealthier residents more, even directly calling out billionaire Ken Griffin, CEO of Citadel, who paid $238 million for a penthouse and owns other units in New York City. Griffin's potential tax bill is estimated to be between $1.3 million and $1.4 million. Mamdani emphasized that the revenue would support city services, stating, "The best city in the world deserves the best parks, libraries, and schools in the world. That's only possible when we all pay our fair share."
In addition to the notifications, the Department of Finance (DOF) published a searchable database of properties that could be subject to the tax. This list, initially estimated to include around 31,000 homes, has reportedly grown to over 960,000 properties citywide. The public nature and scale of this release have drawn criticism, including concerns from the Partnership for New York City about privacy and safety risks due to the publication of owners' names alongside their home addresses. Several prominent figures, including celebrities like Taylor Swift, Anna Wintour, and even city council members, appeared on the list, some of whom claim inaccuracies regarding their primary residency.
