Longtime New York City residents are expressing anger and confusion after receiving unexpected pied-à-terre tax bills. The tax, intended to target owners of luxury second homes and unoccupied properties, is being levied on some individuals who own only one residence in the city and have lived there for decades.
Karen Young, who has resided in New York since 1972 and lived in her West 95th Street brownstone for 30 years, was shocked to receive a bill for $43,000. She described the situation as a "witch hunt" and expressed frustration that the city administration did not verify residency before issuing the tax notice. Young stated that proving her primary residency was a "cumbersome process," requiring her to hire an estate lawyer after three hours of unsuccessful attempts on the Department of Finance website.
The pied-à-terre tax legislation, approved by state lawmakers and Gov. Kathy Hochul, applies to one-to-three-family homes valued at $5 million or more and co-ops and condominiums valued at $1 million or more, provided they are non-primary residences.
Residents who believe they received a bill erroneously can appeal based on either their residency status or the property's valuation. Those appealing based on residency must submit their rebuttal within 30 days of notification. Appeals based on property valuation must be filed with the New York City Tax Commission by March.
Diane Francis, a Canadian journalist who spends several months a year in New York and owns a secondary residence on West 57th Street purchased in 2022, called the tax unfair and "very foolish." She noted that she contributes significantly to the city's economy through spending and paying other taxes. Francis feels targeted despite being a benefit to the city.
Another resident, an 81-year-old former Upper East Side and New Jersey resident who requested anonymity, received a $55,048 tax bill for her sole Manhattan residence. Adding to her distress, the notice was addressed to her late husband, who died six years prior, despite her owning the property and having lived there for 30 years.
The Department of Finance (DOF) would not disclose the total number of notices sent. However, a review of DOF documents revealed over 960,000 residents and residences potentially affected, a number significantly higher than an initial estimate of 31,000 taxpayers.
A DOF spokesperson encouraged anyone who received a letter to inquire or appeal if they believe their property meets exemption criteria, directing them to the agency's website.
Andy Arons, who has lived in his West Village brownstone for 27 years, described the notice as "draconian" and likened the process of requiring residents to justify their long-term residency to "command-and-control" governments. He characterized the tax as "performative" and an attempt to move money from those who earned it to those who have not.