New York City posts notice of new tax levy to pied-a-terre owners

Tax attorneys and accountants are about to make bank helping owners of non-primary homes navigate New York City’s pied-à-terre tax notifications, which started landing in mailboxes before the weekend. “If you have a second home in New York City worth more than $5 (million), check your mailbox when you’re back in the five boroughs – because you’ve got mail,” Mayor Zohran Mamdani announced on social media. Letters from the city’s Department of Finance went to owners flagged as potentially subject to the surcharge. The notices cover Phase 1 of the tax – one- to three-family homes valued at $5 million or more and condos and co-ops valued at $1 million or more — with rates running from 0.8% up to 6.5% depending on property type and value tier. Owners have 30 days to challenge or appeal their designation before formal bills follow in November. The tax fulfills another Mamdani campaign promise to tax the rich, but it may also invite legal action, adding to a landlord lawsuit over a rent freeze filed last Thursday. Stuart Saft, an attorney with Holland & Knight, told HousingWire TBD he expects lawsuits to emerge over the tax. “The notices were supposed to be sent out by August 30,” Saf...