Mamdani's new NYC second home tax could hit over 31,000 luxury properties

More than 31,000 properties across New York City could be subject to the city's new pied-à-terre tax on high-value second homes, far exceeding the initial estimate of about 10,000 properties when the measure was approved earlier this year, according to Bloomberg.

The list, published on Friday by the New York City Finance Department, identifies properties that may be liable for the new non-primary residence property surcharge. However, officials said the list is preliminary, and many properties could be removed after owners file appeals.

According to Bloomberg, city and state officials had estimated in May that roughly 10,000 homes would fall under the new tax. The latest data identifies more than 31,000 properties with market values above the thresholds that could trigger the surcharge.

"This is the list that the Department of Finance will use to identify properties that are potentially subject to the new non-primary residence property surcharge," a Finance Department spokesperson said, according to the news outlet.

The tax was included in New York state's $277 billion budget after being championed by Governor Kathy Hochul.

The surcharge is expected to generate about $500 million annually, helping New York City Mayor Zohran Mamdani reduce a multibillion-dollar budget deficit.

The rollout is being closely watched by the real estate industry amid concerns that the new levy could discourage purchases of luxury second homes.

Industry executives have warned that some owners may decide to sell their properties rather than pay the surcharge.

Property-tax experts also say the city's initial list is likely to include homes that ultimately qualify for exemptions.

According to Bloomberg, homeowners will have 30 days after receiving formal notice to challenge the surcharge.

The city has also launched an online portal explaining eligibility requirements, exemptions and the appeals process.

Officials also said specially trained staff and 311 operators will assist homeowners with questions and appeals.

Industry representatives have also questioned whether the tax will ultimately raise as much revenue as projected if many property owners successfully appeal.

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