New York City property owners have until Oct. 13 to apply for an exemption from the pied-à-terre tax after the Department of Finance moved the deadline on Tuesday — the third time it has done so.
The department announced the one-week extension on the day the previous deadline was set to expire. The new date applies to residential homes, condos and cooperative units, according to the department’s surcharge page.
Lawsuits challenging the tax and its rollout were cited as the reason for the extension. “These meritless lawsuits have created a lot of unnecessary confusion,” Department of Finance spokesperson Jae Ko said in a statement reported by Bloomberg Tax. The administration extended the deadline so owners have the time and information they need to apply, Ko said.
The city mailed notices in July to about 17,000 owners whose properties met the tax’s value thresholds and has approved more than 5,200 exemption requests, according to city figures. The department has received about 9,300 applications; about 4,000 remain under review, The City reported.
The surcharge applies to one- to three-family homes with a Department of Finance market value of $5 million or more and to co-ops and condos with a market value of $1 million or more that are not used as a primary residence, Inman reported. Owners who received a notice must submit information showing the property is not subject to the surcharge, according to the department.
Owners who do not file by Oct. 13 can seek Tax Commission review through March 1 or March 15, 2027, according to accounting firm EisnerAmper.
Agent says 1 week leaves some owners short
Heather Domi
Heather Domi, who leads the Heather Domi Team at Douglas Elliman and is founding chair of the New York Residential Agent Continuum, said the extension was needed and that one week will not cover every owner’s situation.
“I think the extension was absolutely necessary because the lawsuits were extremely confusing as to what someone should do,” Domi told Inman in an email. “We’ve been advising all clients to be sure to hit the deadline regardless of any court proceedings. Better safe than sorry.”
A week is “not really” enough for owners appealing on value or for landlords who need documentation from a tenant, Domi said.
“This still doesn’t address the core incompetence in the rollout,” she said.
Domi said the administration should acknowledge its mistakes and review cases where the tax reached owners it was not intended for.
Jason Haber, co-founder of the American Real Estate Association, called for the tax to be halted.
“Today the city moved the pied-à-terre tax deadline for the third time, and it did so on the very day the deadline was due,” Haber said in a statement. “That is not a sign of a process working. It is proof that it is broken.”
Haber cited the Sept. 29 court ruling that found the city’s notices arbitrary and capricious, as well as the more than 5,200 exemptions the city has approved.
Where the lawsuits stand
A state appeals court this week put on hold a Sept. 29 ruling by Staten Island Supreme Court Justice Wayne Ozzi, who found the department’s notices arbitrary and capricious and ordered the city to restart its rollout, Inman reported.
The hold lets the city continue implementing the surcharge, which it plans to include on property tax bills due Jan. 1, while the court considers the appeal. The court said it will rule by Nov. 10, Bloomberg reported.
The homeowners who brought that case argue the city’s notification process confused owners.
Two other pending lawsuits, including one filed by former U.S. Commerce Secretary Wilbur Ross and casino executive Steve Wynn, allege the surcharge is illegal because it targets owners who live outside the city, Inman reported.
