Mamdanis stubbornly insists pied--terre tax will raise $500M even as NYC winnows number of properties getting hit

Mayor Zohran Mamdani stubbornly insisted the Big Apple will still collect $500 million through the new pied-à-terre tax — despite his own officials slashing the number of properties that could be hit with the levy by 4,000.“We continue to be confident in that assessment of what the annual revenue will look like,” Mamdani told reporters Wednesday.Hizzoner’s sunny assertion came after the city said Department of Finance officials would send out new notices to 10,800 property owners who needed to prove New York City was their primary residence.The tally is far below the 17,000 notices DOF initially sent out as the city first rolled out the tax on luxury second homes late last month.The troubled launch has prompted mass confusion and a high-profile lawsuit — which itself led to court filings Tuesday in which city officials revealed the reduced number of notices and again extended the deadline for recipients to file for exemptions.The uncertainty over how many properties would actually qualify under the levy raised questions over whether it’ll raise its promised $500 million, said Jared Walczak, a senior fellow with the Tax Foundation.“When you have a tax base that starts with 17,000 and continues removing properties by the thousands, there is every reason to believe that the estimate is too high and the city based it on incomplete and overreaching assumptions,” he said.“This is doable — they could do a new estimate with knowledge of homes that come off the rolls.It’s not a hard calculation to make.” The pied-à-terre surcharge arose as Mamdani pushed Gov.

Kathy Hochul and Albany lawmakers to pass a slew of “tax the rich” measures.Hochul largely held firm against soaking the wealthy with new taxes, but worked with the legislature to pass the pied-à-terre as a way to buoy New York City’s shaky finances.Under the law, the tax applies to one- to three -family homes worth at least $5 million and co-ops and condos valued at $1 million or more...