NYC sending out first pied--terre tax notices to owners of luxury second homes

The Mamdani administration has unveiled rules for how the city’s new pied-à-terre tax will be enforced — with the first surcharge notices going out in the coming weeks, The Post has learned.The city Department of Finance will let owners of thousands of luxury secondary residences know they’ve been deemed eligible for the tax by August 30, according to the newly published proposed guidelines.The DOF has subpoena power and can conduct audits going back six years to determine whether a property should be taxed or exempt.One-to-3 family homes worth at least $5 million and co-ops and condominiums valued at $1 million or more — that are unoccupied, non-primary residences — would be subject to the surcharge, approved by the state Legislature.The DOF has subpoena power and can conduct audits going back six years to determine whether a property should be taxed or exempt.And it can impose a fine equal to 50% of the pied-à-terre tax bill for providing false, inaccurate or misleading information — in a bid to crack down on “gamesmanship” by owners seeking to avoid the levy, according to the rules.The city particularly highlighted as an example, “a condominium property [that] has been divided into more than three units to avoid application of the surcharge and such division was made in bad faith.”“This provision would promote compliance with the surcharge by increasing the potential cost of evasion by property owners while ensuring that such property owners are afforded an opportunity to challenge the imposition of such penalties,” the regulation states.Owners will have 30 days to appeal or challenge the new tax bill imposed on non-primary residences.Appeals would be made to the city’s Tax Commission, or in some cases to the DOF.The surcharge — part of Mayor Zohran Mamdani and his Democratic Socialists of America comrades’ “tax the rich” crusade — aims to target wealthy people who don’t live in New York City, but own residential property...