Chair Lee explains the pied-à-terre tax framework and rollout scope
Finance Chair Linda Lee explains the surcharge applies to 1-3 family homes valued at $5M+ and condo/co-op units valued at $1M+ that are not primary residences. She notes DOF mailed 17,000 notices and published a supplemental roll of 900,000+ properties.
Great, thank you so much, Chair Brewer.
And good afternoon, everyone.
Welcome again to today's oversight hearing on the implementation and rollout of the city's pied-a-terre tax, also known as the non-primary residence property surcharge.
The pied-a-terre tax
X was enacted as part of the state's fiscal year 2026-27 budget and took effect on July 1, 2026.
The surcharge applies to one to three family homes valued at $5 million or more, as well as condominium and cooperative units valued at $1 million or more that do not serve as the owner's primary residence.
Properties that serve as the primary residence of the owner, an immediate family member, or a qualifying tenant are not subject to the surcharge.
Since implementation began, Department of Finance has mailed notices to approximately 17,000 property owners identified as potentially subject to the surcharge and has published a supplemental roll listing more than 900,000 properties that may fall within the tax scope.
Given the scale of this rollout and the number of New Yorkers who have been affected, it is crucial that this Council conduct oversight of how the administration is planning on implementing this new tax.