New York City homeowners say they’re confused by Mayor Zohran Mamdani’s rollout of the pied-à-terre tax — and they’re joining City Council on Tuesday to testify.
The Mayor’s Office opted to forgo an in-person appearance at the hearing, instead submitting a written memo. In a copy obtained by Business Insider, Mamdani’s team said their release of home values and addresses ahead of the levy is standard, with Department of Finance Commissioner Richard Lee writing that the information is “highly accessible to the public, and it has been for many years. Any suggestion to the contrary is incorrect.”
The levy on luxury second homes sparked a public uproar in late July after the NYC Department of Finance sent letters to 17,000 addresses that could potentially be a pied-à-terre based on property value and internal records. The DOF also published a list of over 900,000 properties and their valuations across the city.
In the Tuesday testimony, Lee continued that “the supplemental roll does not establish which properties are subject to the surcharge,” and is intended to provide “a basis for property owners to challenge the value of their properties.” Residents have until September 18 — an extended deadline — to prove their property doesn’t qualify for the tax before it starts showing up on bills in 2027.
On social media, some New Yorkers said that they mistakenly received a letter for their primary residence, while others felt their privacy was violated during the DOF records release.
Council Member Gail Brewer, who represents Manhattan’s Upper West Side, told Business Insider that her office has been “bombarded” by concerned constituents in recent weeks. Brewer said that she and other council members complied “pages and pages” of questions about the pied-à-terre rollout they hope the Mayor’s Office will address.
A lawsuit — filed by three residents based in Manhattan and Staten Island — is also pending, with a court date scheduled for August 31. The plaintiffs are seeking “emergency relief” after the records release that court documents allege “caused mass confusion” and “facilitated, invited, and amplified unwanted scrutiny of homeowners’ personal information.”
Their attorney, Randy Mastro, said hundreds of thousands of New York City homeowners were “subjected to a process they never should have been a part of in the first place.”
The city said it has hired two dozen staffers to answer resident questions about the tax and assist with appeals. Passed in May, the policy will impose a progressive levy on non-primary homes valued by the DOF at least $5 million and condos and co-ops valued at least $1 million.
Deputy Press Secretary Matt Rauschenbach told Business Insider last week that “the Law Department is prepared to vigorously defend the city against this suit” and the money raised by the levy will “help deliver the city New Yorkers deserve: cleaner parks, safer streets, and critical public investments that make our city a more affordable place,” to the tune of $500 million a year.
Lee said in his testimony that he is submitting only written material due to the ongoing litigation and will be available to testify after the lawsuit is settled.
Read the full memo:
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