Danielle Muoio Dunn (Bloomberg Law): NYC Limits Options for Owners of Second Homes to Appeal New Tax
The owners of luxury second homes in New York City will have limited time and options to appeal the new pied-à-terre tax after receiving notice of their bills next month.
City officials are moving quickly to implement the tax on second homes to ensure it raises the $500 million it’s expected to generate this fiscal year, which ends June 30, 2027. New York Gov. Kathy Hochul (D) proposed the second-home tax in April to help fill a multibillion budget gap projected by the city this fiscal year, after spurning calls to raise income taxes on high earners and corporations.
The Tax Commission is the city’s independent forum for deciding property tax disputes, but it can take months for cases to be decided. The agency rendered decisions on about half of the 57,198 property tax challenges it received last year, deciding on more than 31,000 cases, according to its most recent performance report.
Taxpayers may have no choice but to pay the contested pied-à-terre tax while their case plays out, Williams said. If they win their case, the city doesn’t owe interest on what was paid.
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