New York City has given homeowners who received notices that they may be subject to the new pied-à-terre surcharge an extra four weeks to apply for exemptions, following criticism over the rollout of the notices. Mayor Zohran Mamdani and Department of Finance (DOF) Commissioner Richard Lee on Saturday announced the deadline extension, which gives eligible property owners until September 18 to submit exemption applications for surcharges on their non-primary residences. The city began notifying eligible property owners late last month, and the rollout came under heavy criticism from some homeowners who said they received notices despite not qualifying for the new tax.
Approved in May, the surcharge applies to one- to three-family homes, condominiums, and co-ops valued at $5 million or more whose owners maintain a separate primary residence.
The tax fulfills one of Mamdani’s key campaign pledges to raise taxes on wealthy New Yorkers. Gov. Kathy Hochul, who previously opposed the tax, reversed course as the city grappled with a multibillion-dollar budget gap, later saying the surcharge could generate at least $500 million in annual revenue for the city.
However, while the tax is designed to target wealthier residents, some New Yorkers who say they should not qualify have been caught in the crossfire since the city began sending notices to homeowners who may be subject to the tax last month.
The extension gives homeowners additional time to prove that their property is their primary residence or demonstrate that they are otherwise not subject to the surcharge. It also gives them more time to receive assistance from the DOF and have their questions answered before submitting an application.
As 6sqft previously reported, there was confusion over who qualifies for the surcharge, a misconception that was amplified after the DOF released its twice-yearly publication of the names and addresses linked to nearly one million taxable properties, in accordance with the new law.
Additionally, there have been several instances of individuals with only one primary NYC residence being notified that they may be subject to the tax. Karen Young, a NYC resident since 1972, told New York Times that she received a letter warning that she may be subject to the surcharge. Young said her five-story Upper West Side home is the only residence she has lived in since 1997.
Council Member Gale Brewer, who has lived full-time in her Upper West Side townhouse since 1994, said she found her name on the list.
During a press conference last week, Mamdani clarified that the lists cover most non-rental residential properties in the city, not just those likely to be subject to the tax. Only property owners who have received notices are subject to the surcharge.
He added that those owners represent only a small portion of the properties included on the lists. The majority fall below the threshold required for owners to be eligible for the surcharge, with roughly 24,000 properties valued below $5 million. In addition, the surcharge would only apply to properties that are not the owner’s primary residence.
Still, in light of the confusion, the city is now offering a four-week extension for homeowners to ask additional questions and submit the required documentation.
During a Monday press conference, Mamdani continued to address the confusion between the property tax lists and the letters New Yorkers have been receiving, saying that 17,000 homeowners had already received the notices.
“There has been both a willful and an unintentional conflation of both the property tax roll and these letters,” he said.
“Anyone who received a letter and believes they may qualify for an exemption should take advantage of this additional time,” Lee said. “Our team is ready to answer questions, help people navigate the application process, and ensure every applicant has the information they need.”
The city has also expanded its outreach efforts across all five boroughs, working directly with co-op and condominium boards, property managers and building representatives to share information with residents. It is also conducting outreach at senior centers and other community gathering spaces.
The city will also reach out directly to homeowners who received notices, where contact information is available, to answer questions and provide guidance on the exemption and appeals process.
“The pied-à-terre tax is an important new tool to help our city collect the revenue we need for safer streets, cleaner parks, and other critical investments across the five boroughs,” Mamdani said.
“We are announcing the extension of the exemption application deadline to ensure that New Yorkers who received the ‘You may be subject to…’ letters have the time and information they need.”
Homeowners who need assistance with the exemption process can call 311 or contact the DOF through its website.
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