Mamdani Extends Pied-à-Terre Tax Exemption Deadline

New York City homeowners who want to apply for an exemption from Mayor Zohran Mamdani’s pied-à-terre tax have been given an additional month to do so, officials announced.

The Gothamist reported that residents across the city’s five boroughs who feel their homes are being unfairly targeted by the new tax on secondary residences previously had until Aug. 21 to file appeals. Now, they have until Sept. 18 to prove that they live in those places full-time, according to Mamdani and Department of Finance Commissioner Richard Lee.

In a statement with the update, Mamdani called the pied-à-terre tax “an important new tool” to help the city collect revenue for safety projects, parks and other investments.

“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,” he said.

Confusion, Frustration

The Gothamist reported that the pied-à-terre tax rollout has been wrought with confusion and frustration.

In late July, the Department of Finance posted a database of more than 900,000 properties that “may” be subject to the new surcharge. That caused some people to believe their homes were mistakenly subject to the tax. A City Hall official clarified last week that the city had sent out letters to only 17,000 addresses it suspects are second homes worth more than $5 million.

City officials said they are expanding their outreach efforts across the five boroughs — working with co-op and condominium boards and property managers, conducting outreach at senior centers and other community spaces, contacting homeowners directly, and partnering with local representatives.

“Our team is ready to answer questions, help people navigate the application process and ensure every applicant has the information they need,” Lee said in the announcement.

The city said that homeowners who need help with the exemption process can call 311 or contact the Department of Finance through its website.

Luxury Sales

In July, a new report from Compass, showed that New York City’s luxury housing market is showing little sign of slowing after Mamdani’s new tax on high-value second homes took effect.

The city’s first-ever pied-à-terre tax took effect on July 1, applying to non-primary residences valued at more than $5 million as part of the mayor’s larger effort to improve housing affordability. Early market data, however, suggests the tax has done little to deter wealthy buyers from buying Manhattan’s most expensive properties.

Compass’ second-quarter Manhattan market report shows that signings for homes priced above $20 million rose 25% year-over-year, while activity in the $10 million to $20 million segment rose 38.6%.