Fuming New Yorkers testified Tuesday that Mayor Zohran Mamdani’s rollout of the new pied-à-terre tax has been confusing and felt like a direct government attack. The concerns were aired during a three-hour oversight hearing by the City Council, which aimed to question administration officials about the new levy. Approximately 30 homeowners and members of the real estate industry shared their experiences.
Robert Bertagna, an Upper East Side retiree, recounted receiving a notice from the city Department of Finance stating he would owe $52,000 annually under the surcharge unless he successfully applied for an exemption. Bertagna, who has lived in his home for 30 years and pays New York taxes, votes in the city, and has a New York driver's license, described the notice as an intrusion and an act of intimidation. "The government is assuming that I’m guilty unless I can prove myself to be innocent," he stated.
Even those who support the tax, intended to target luxury second homes valued at $5 million and above, criticized the rollout. Kyle Braff shared the concerns of a friend who purchased a brownstone 40 years ago, now potentially worth over the $5 million threshold. The friend worries the tax could impact his ability to stay connected with his children and grandchildren, who live in the city, as he retired down south for financial and weather reasons.
Concerns were also raised by representatives of co-op groups. Mary Ann Rothman, executive director of the Council of York Cooperatives and Condominiums, explained that the Department of Finance would send surcharge bills directly to cooperative boards or corporations, not individual shareholders. "The smaller the building, the larger the portion of the non-residents’ tax that each resident shareholder will have to find a way to pay. Where is the justice and jeopardizing the financial stability of a cooperative in this way?" Rothman asked.
City Hall officials did not attend the hearing, with representatives citing an ongoing lawsuit seeking to halt the tax's rollout. Richard Lee, Director of the Department of Finance, submitted written testimony defending the launch, stating that the 17,000 notices sent out informed homeowners they could be subject to the levy and that those who believe their property should not be taxed have an opportunity to submit proof of primary residency.
Kenneth Fishel, an Upper East Side resident and plaintiff in a lawsuit against the tax rollout, testified that he only discovered a notice incorrectly stating he owed $58,000 for a non-primary residence by accident when his neighbor, who lives on a lower floor, received it instead. He expressed that he would have been unaware of the bill if he hadn't encountered his neighbor.
Jason Haber, president of the New York Residential Agent Continuum, criticized the administration for publicly releasing a tax roll of 900,000 properties that could be subject to the levy, calling it "mass doxxing." He warned that this information could be exploited by scammers or individuals with malicious intent. Lee, in his testimony, stated that the city publishes tax rolls annually as required by law.
The city's Democratic Socialists of America chapter sarcastically responded to the complaints, noting that working-class New Yorkers have to provide more documentation for basic public benefits. They argued that the pushback from wealthy individuals stems from a lack of obligation to the city.
A spokesperson for Gov. Kathy Hochul stated that the governor's office was a facilitator of the law and not responsible for the rollout, referring to Hochul's previous comments distancing herself from the tax. The law does include mechanisms for the city to collect directly from co-op unit owners, according to Hochul's representatives.
