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Governor Kathy Hochul is investigating potential tax fraud as Mayor Zohran Mamdani extends the deadline for the new pied-à-terre tax.

Governor Kathy Hochul is now actively investigating potential tax fraud revealed by the rollout of New York City's new pied-à-terre tax. The investigation follows a period of confusion where many residents received notices for a tax intended only for secondary residences valued at over $5 million. Mayor Zohran Mamdani extended the deadline for homeowners to prove their primary residence and claim an exemption until September 18. This move addresses concerns from residents who received notices for properties they consider their main homes. The tax is expected to raise approximately $500 million for city services. The governor's office is specifically looking into cases where residents claim to be primary residents of the city while paying taxes elsewhere, such as those with cars registered in other states. This oversight addresses a long-standing issue where local drivers registered cars out-of-state to save money, a problem that has cost the city over $50 million annually.

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