New York City Appeals Pause on $500 Million Pied-à-Terre Tax as 17,000 Properties Face Notices
Updated
Updated · Fortune · Aug 11
New York City Appeals Pause on $500 Million Pied-à-Terre Tax as 17,000 Properties Face Notices
3 articles · Updated · Fortune · Aug 11
Summary
A judge temporarily paused New York City's rollout of its new pied-à-terre tax, but the city's appeal automatically kept the effort alive while the case moves through court.
The tax targets non-primary residences worth more than $5 million for one- to three-family homes and $1 million for condos and co-ops, a plan City Hall says could raise $500 million a year.
About 17,000 properties received notices to seek exemptions, yet trusts, LLCs and informal living arrangements have made it difficult to determine who actually owns or primarily occupies many homes.
That uncertainty has fueled lawsuits and backlash from wealthy owners after the city published a broad list of potential taxpayers, with critics calling it public shaming and lawyers expecting more exemption fights ahead.