NYC property owners express anger and confusion over rollout of Mamdani's 'pied-à-terre tax'

July 31, 2026 - 02:22

The notices, which began arriving in mailboxes across the five boroughs this week, inform recipients that they may be liable for the tax, which targets apartments used as secondary residences. Many owners say the language in the notice is vague, leaving them unsure whether their primary home or a rental property could trigger the levy.

"I have owned my co-op for 30 years, and I live here full time," said one Upper East Side resident who asked not to be named. "This letter says I might owe thousands, but it does not explain how to prove I am not a part-time resident. It is a mess."

The tax, which was passed as part of the city's budget last year, applies to residential units valued at $5 million or more that are not the owner's primary residence. But the rollout has been rocky, with property owners reporting that the city's online portal crashes when they try to file for an exemption, and that phone lines for the Department of Finance are overwhelmed.

Real estate attorneys say the confusion stems from the city's reliance on self-reporting and its inability to cross-check data with other agencies. "The notices are essentially a fishing expedition," said one Manhattan lawyer. "They are asking everyone to prove a negative, and that is creating panic."

City officials defend the tax, saying it will generate an estimated $200 million annually for affordable housing programs. But they acknowledge the communication has been poor. A spokesperson for the mayor's office said the city is working on clearer guidance and will extend the deadline for filing responses.

For now, many owners are left wondering if they should hire a lawyer or simply wait and see. "I am not selling my apartment, but I am not paying a tax I do not owe either," said a Brooklyn homeowner who received the notice. "This is no way to run a city."