I’m sipping my coffee and reading about the latest news from New York City, where a judge just ruled against the city’s planned tax on secondary homes, also known as the pied-à-terre tax. Folks, this is a story about rich people and their fancy homes, but it’s also about the city’s attempt to raise some extra cash. The tax was supposed to be a surcharge on non-primary residences in New York City valued over $5 million, as well as co-ops valued at $1 million or more. Mayor Zohran Mamdani and Gov. Kathy Hochul were all for it, but it looks like the rollout was a bit of a mess.
The city’s Department of Finance website posted a tax roll in July that included names and addresses of over 900,000 New York City homeowners, even if they were not subject to the tax. Yeah, that’s a lot of people who got a nice surprise in the mail. And get this, the city even mailed out approximately 17,000 notices to residents, telling them they needed to file for exemption or be subject to the tax. But, as it turns out, the judge said the city didn’t follow the rules, and those notices have to be canceled.
Judge Wayne M. Ozzi of Richmond County ruled that the tax roll must be removed from the website, but it can be replaced with a new one that only includes properties that are actually subject to the surcharge. The city also has to mail out new notices, but this time, they have to follow the rules and make an “individualized initial determination” about who owes the surcharge. Randy Mastro, an attorney representing the plaintiffs, said the court recognized that the administration failed to follow state law, and now they have to go back and do it right.
The spokesperson for Mayor Mamdani said the decision was “wrong” and that the pied-à-terre surcharge is about fairness – if you can afford a luxury second home in New York City, you should pay your fair share for the schools, streets, and parks. But, it looks like the city is planning to invoke a stay on the ruling, so this story is far from over. And, as if that’s not enough, there’s another lawsuit brewing in Suffolk County, where a group of homeowners and a co-op are suing New York State over the pied-à-terre tax, saying it discriminates against nonresidents and imposes unconstitutional burdens on homeowners.
It’s a bit of a messy situation, but I’m sure the city will figure it out. After all, they have to – they’re trying to raise some cash to fill that budget gap. And, who knows, maybe they’ll even get it right next time. But, for now, it’s just another day in the city that never sleeps, where the rich and famous have to deal with taxes, just like the rest of us. And, as I finish my coffee, I’m left thinking, only in New York, folks, only in New York. The city’s attempt to tax the rich has turned into a bit of a circus, but hey, at least it’s entertaining.
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
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