3 weeks ago
Homeowners Sue New York City Over Pied-à-Terre Tax Roll
Some homeowners in New York City are upset about a new tax the city made.
The tax is for people who own very expensive second homes in the city, called pied-à-terre homes.
To figure out who might have to pay, the city put a huge list of nearly one million homes on the internet.
But officials say only about 10,000 to 13,000 homes should really have to pay the tax.
People say the list shows too much private information and makes everyone confused about their taxes.
A group of three homeowners is now suing the city in court over the list.
They say the city should check which homes really count instead of making people prove they don't have to pay.
They also want the judge to stop the city from using the list and give people more time to respond.
The city responded by giving homeowners extra time, until September 18, to ask for an exemption.
The mayor says only people who get a letter in the mail will actually have to pay the tax.
Three homeowners sued New York City in Staten Island court over the rollout of Mayor Mamdani's pied-à-terre tax.
The lawsuit targets the assessment roll and mailed notices, not the tax itself, citing 'mass confusion' and 'unwarranted scrutiny.'
The online list covered more than 900,000 properties, while officials estimate only 10,000 to 13,000 will owe the tax.
The levy, signed in May by Governor Kathy Hochul, applies to single-family homes worth $5 million or more and apartments worth $1 million or more.
The suit seeks to block the September 18 deadline and remove the list; about 2,000 people have applied for exemptions.
- Who
- Three New York City homeowners represented by litigator Randy Mastro, suing the city; Mayor Zohran Mamdani's administration and the Department of Finance are the defendants.
- What
- A lawsuit challenging the rollout of the pied-à-terre tax, targeting the overbroad assessment roll and notices mailed to potentially liable property owners.
- Where
- New York State Supreme Court, Richmond County (Staten Island), New York City.
- When
- The suit was filed on Friday; the tax was signed into law in May; the response deadline is September 18.
- Why
- Homeowners say the nearly one-million-property list caused mass confusion and unwarranted scrutiny of personal information and improperly shifted the burden of proving exemption onto residents; the tax is expected to raise about $500 million annually to help close the city's budget deficit.
Homeowners
City Officials
Publication of the property list
Homeowners
Posting an assessment roll of nearly one million properties causes mass confusion and unwarranted scrutiny of homeowners' personal information, including longtime primary residences.
City Officials
Mayor Mamdani defends the rollout, saying only property owners who receive a letter from city officials will be forced to pay the tax, and the city extended the exemption deadline to September 18.
Who must prove liability
Homeowners
The city arbitrarily and capriciously places the burden on residents to prove they are not subject to the surcharge instead of diligently assessing which properties actually qualify.
City Officials
The city has an exemption process, expanded outreach to owners of more than 31,000 potentially subject properties, and roughly 2,000 people have already completed exemption applications.
Key facts
- Tax type
- Pied-à-terre (second-home) surcharge
- Tax thresholds
- Single-family homes $5M+; apartments $1M+
- Properties on assessment roll
- More than 900,000 (nearly 1 million)
- Expected liable properties
- 10,000 to 13,000
- Notices mailed
- 17,000
- Exemption applications
- About 2,000
- Response deadline
- September 18 (extended by four weeks)
- Estimated annual revenue
- About $500 million
Quotes
Randy Mastro
Prominent litigator and former deputy mayor under Giuliani
“"The city has arbitrarily and capriciously foisted onto New York City residents the burden of proving they are not subject to the surcharge."”
livemint.com
Homeowners
Group of homeowners filing the lawsuit
“The city has arbitrarily and capriciously foisted onto New York City residents the burden of proving they are not subject to the surcharge, instead of the city respondents discharging the city’s own statutory obligation in the first instance to diligently assess and determine, using the vast resources at its disposal, the properties that are actually subject to the surcharge”
livemint.com
Sources
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