New York City Mayor Zohran Mamdani’s administration has issued a second extension on the deadline for challenging his pied-à-terre tax while acknowledging that more than 1,000 residents received tax bill notices by mistake.
The tax is designed to target the owners of luxury second homes – condominiums and co-ops valued at a minimum of $1 million and one- to three-family homes valued above $5 million. The original deadline for seeking an exemption was Aug. 21, but that was later moved to Sept. 18 following the brouhaha that occurred after the Mamdani administration published a searchable database of the addresses and names of property owners with homes valued at over $1 million – over 960,000 entries. Many of the prominent property owners on the list complained to the media that they did not own second homes in the city.
The city’s Department of Finance (DOF) then sent out 17,000 notices to New Yorkers who were supposedly the correct targets for the new tax.
The New York Post reports the deadline for property owners to file for an exemption on the new tax has been moved back to Oct. 6. The DOF also admitted in court filings that it mistakenly sent the tax letters to at least 1,210 addresses that were actually primary residences.
The DOF also stated that 11,000 people began the applications for exemptions and roughly 5,500 notice recipients submitted appeals. To date, exemptions granted to 2,900 households.
Randy Mastro, an attorney who is representing property owners suing the city over the tax rollout, stated the city admitted it bungled the introduction of the tax.
“The city’s latest submission is tantamount to an admission of a massive screw-up by the Mamdani administration,” said Mastro, who was a first deputy to former Mayor Eric Adams. “Instead of doing the homework and determining who actually owed the surcharge … the Mamdani administration switched the burden on to thousands and thousands of New Yorkers who now have to prove they actually live in their own homes.”
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