Pied-a-terre tax homeowners have been notified, Mamdani says
Announced earlier this year, the pied-à-terre is the biggest step yet for taxing the wealthy, one of Mamdani’s key campaign points.
One of Mayor Zoran Mamdani’s main campaign promises was to tax the wealthy, and that could soon come true.
New York City officials have begun notifying people affected by the latest pied-à-terre tax, sending letters to the five boroughs.
Here’s what you need to know:
What is the pied-à-terre tax?
Pied-à-terre means “down to earth” in French and can mean a second home or residence.
The new tax “would impose an annual surcharge on one- to three-unit homes, condos, and co-ops valued at $5 million or more if the owner has another principal residence outside of New York City,” the city said.
This is the first of its kind in the state and a step toward one of Mamdani’s key campaign points: increasing taxes on wealthy residents. At the time, the city announced it was expected to generate $500 million in annual revenue.
A previous release about the move said, “This measure targets ultra-wealthy ex-urban residents and global elites who use New York City real estate as a store of wealth rather than a home.”
One example used by the Mamdani administration was billionaire Ken Griffin, who owns a penthouse in Manhattan worth about $240 million. The clip became controversial after Griffin himself called the video “creepy and weird” and said what really pissed him off was “the fact that he harmed me.”
New York City sends letters to homeowners affected under new wealth tax
The city said letters began being mailed this week to homeowners who “may be eligible” for the new tax. A release announcing the move calls it “the first step in implementing the tax.”
New York City officials also launched a website to help with the process (nyc.gov/npsurcharge) and added 24 new jobs within the Department of Treasury and the Office of Administrative Tax Appeals to help implement the program.
“Today, we sent a letter to property owners informing them that a new pied-à-terre tax will soon be introduced,” Mamdani posted on X on Thursday, July 23.
“The best cities in the world need the best parks, libraries, and schools in the world. That’s only possible if we all pay our fair share.”
