Early state tax data prompts NYC to pare pied-a-terre tax pool

The list of homeowners who may owe New York City’s new pied-à-terre tax has shrunk, partly because New York State provided tax information six months early. New court filings show a second wave of letters is going out to thousands of owners who may be required to pay the tax, which the city calls a surcharge. Plaintiffs in a lawsuit challenging the tax rollout say the latest filings prove the city moved too quickly. Mayor Zohran Mamdani stood by the surcharge at a press conference this week. He said the city still expects it to raise significant revenue. “We continue to be confident in that assessment of what the annual revenue will look like,” the mayor said. The legal tussle that began earlier this month centers on homeowners who argue that the city’s initial notice mailing was too broad. Their lawsuit contends that the city unduly forced owners to prove residency, rather than requiring the city to determine eligibility. At issue is a surcharge on high-value properties not used as primary residences. It applies to properties worth at least $5 million, or $1 million for some property types. New round of letters The New York Department of Finance is sending letters to a new wave of...