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Mayor Zohran Kwame Mamdani Initiates New Pied-à-Terre Tax to Target Wealthy Second-Home Owners in New York City

The administration announced the official start of the pied-à-terre tax, a new surcharge on non-primary residences in New York City. Mayor Zohran Kwame Mamdani and Department of Finance Commissioner Richard Lee began notifying property owners via mail that they may be subject to the tax, which applies to one- to three-family homes, condominiums, and co-ops when owners have a separate primary residence. Designed to target the wealthy, the tax initially targets homes valued at more than $5 million and condos or co-ops valued at more than $1 million. While the tax has sparked some criticism from billionaires like Ken Griffin, who called the move "creepy" and "frightening," the administration aims to use the revenue to fund essential services like parks, schools, and libraries. The tax will be based on assessed values for the first two years, with a revaluation based on market prices starting in the 2028-29 tax year. Property owners can now access a dedicated webpage and resources to determine their eligibility and submit documentation.

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