Joint Committee Oversight Hearing on Pied-à-Terre Tax Implementation – August 18, 2026
Joint Committee Oversight Hearing on Pied-à-Terre Tax Implementation – August 18, 2026
The New York City Council Committees on Finance and on Governmental Operations, State & Federal Legislation held a joint oversight hearing on August 18, 2026, to examine the rollout of the Pied-à-Terre tax (non-primary residence property surcharge). The tax, enacted as part of the state fiscal year 2026-27 budget, applies to high-value properties not used as primary residences. The Department of Finance did not send a representative to testify, citing pending litigation; instead, written testimony from Finance Commissioner Richard Lee was read into the record. Council members criticized the administration’s absence and questioned the implementation, including the publication of a list of over 900,000 properties, the sending of notices to 17,000 property owners, and the burden placed on homeowners to prove primary residency. Multiple panels of public testimony were heard, reflecting both support for the tax’s goals and strong criticism of its execution. The hearing concluded with the chairs reading over 20 written questions that will be submitted to the administration for response.
Public Comments & Testimony
- Kyle Bragg (private citizen) expressed general support for taxing the wealthy but criticized the unclear rollout, citing a friend who retired and kept a brownstone worth over $5 million but is unsure if he is subject to the tax.
- Jason Haber (co-founder, American Real Estate Association; president, NIRAC) criticized the publication of 959,710 names and addresses, calling it a “dox” that creates risks for fraud and scams. He argued the burden of proof should be on the city, not homeowners.
- Mary Ann Rothman (Executive Director, Council of New York Cooperatives and Condominiums) stated that co-ops are unfairly required to collect and remit the surcharge from shareholders, potentially jeopardizing building finances. She urged DOF to collect directly from non-resident owners.
- Rebecca Poole (Director of Membership and Communication, CNYC) highlighted concerns about the $1 million imputed market value for condos/co-ops not equating to $5 million sale price, and retroactive application causing hardship for longtime owners.
- Tor Tours (private citizen, co-op owner) said his building was included because of a penthouse unit, and he personally downloaded a list with apartment values, calling it an invasion of privacy and a result of “socialist policies.”
- Charles Diamond (former city employee, speaking personally) criticized the release of over 98% irrelevant PII and called the administration’s absence “utterly bizarre,” urging the council to condemn it.
- Anna Champany (Vice President for Research, Citizens Budget Commission) stated CBC does not support the tax but focused on implementation problems: limited vetting, compressed timeline, and insufficient communication. She recommended evaluation of impacts.
- Leonard Steinberg (real estate professional) argued the messaging is misleading because DOF’s market value does not equal sale price, creating unfair targeting.
- Heather Domy (real estate broker) outlined unintended consequences: retired owners, trusts, tenants in place, and sold properties all facing uncertainty and legal costs.
- Beverly Solo, Isabel Peñaranda Curry, Dave Backer, Lala Peñaranda all expressed support for the tax itself, arguing it funds essential services and targets the wealthy. Curry noted that property value is socially produced. Backer said wealthy homeowners “doth protest a little too much.” Peñaranda urged the council to stand with public sector workers.
- Lucy Sexton (New Yorkers for Culture and Arts) supported the tax but asked for an exemption for artists in Joint Live-Work Quarters (JLWQA), citing a case where an inheritor of a dance studio loft received a $90,000 notice despite using the space for nonprofit arts.
- Ed Lee (private citizen, Republican) generally supported the tax in spirit but questioned spending priorities and noted homeless issues.
- June Barwick (treasurer of a small co-op) argued that co-op valuations are unfairly high compared to single-family homes and that exemptions should be based on assessed value, not market value.
- Robert Vertigani (homeowner of 30 years) received a $52,000 notice despite clear evidence of primary residency, calling the process “socialist government intrusion” and shifting the burden to citizens.
- Ryan Foley (attorney for condo developers) noted that unsold condominium units that should be excluded under the statute still received notices, indicating implementation failures.
- Shannon Richter, Elizabeth Valdez, Baka Champ, Alison Klemp all spoke in strong support of the tax, emphasizing the need for revenue for schools, child care, disability services, and affordable housing. Klemp argued that uploading a PDF is a minor burden compared to struggles faced by low-income New Yorkers.
- Christopher Leon Johnson opposed the tax, calling it a “scam” by nonprofits and the DSA, penalizing success and rewarding laziness.
- Valerie Mason criticized the administration’s absence and called for transparency, noting co-ops’ difficulties and the retroactive nature of the tax.
Discussion Items
- Council members repeatedly condemned the Department of Finance’s failure to appear, with Councilmember Morano calling it “outrageous” and stating that litigation does not suspend legislative oversight. Councilmember Sanchez echoed that the administration’s absence showed disrespect. Councilmember Carr said the rollout was “botched” and the burden of proof was inverted. Councilmember Wong noted the administration could share data but chose not to, and asked about safety concerns from the published list. Councilmember Narcisse expressed concern for seniors and co-op shareholders. Councilmember Dinowitz asked about legal costs for co-ops and suggested steps the city could take. Councilmember Zwang questioned the administration’s identification method. Councilmember Paladino on Zoom accused the administration of using the tax as a tool for eminent domain.
- The committee chairs, Gail Brewer and Linda Lee, affirmed their support for the Pied-à-Terre tax itself but criticized its implementation. They noted that the council would send written questions to DOF for follow-up.
- Written testimony from Commissioner Richard Lee was read, defending the supplemental role as required by law and explaining the process. He cited ongoing litigation as the reason for not appearing in person.
Key Outcomes
- The hearing was filed by the committee (as noted in minutes) and concluded with a commitment to submit over 20 written questions to the Department of Finance. The questions covered topics such as the publication of the 900,000-property list, criteria for sending 17,000 notices, use of existing data to verify residency, the appeals process, and co-op/condo implementation issues.
- Councilmembers urged the administration to provide clear answers and consider recommendations from former Finance Commissioner Martha Stark and others, including limiting the published list to properties meeting statutory thresholds, improving online tools, and shifting the burden of proof to the city.
- No legislation was voted on; the hearing was solely for oversight.
Meeting Transcript
Good afternoon, good afternoon. Welcome to the New York City Council hearing on the Committee on Governmental Operations, State and Federal Legislation joint with finance at this time. Please silence all electronics and do not approach the dais. If you're planning on testifying, please ensure you fill out a testimony slip with the sergeants at the back. You may do so online at testimony at council.nyc.gov. That is testimony at council.nyc.gov. Thank you for your cooperation, chairs. You may begin. Thank you very much. I am Gail Brewer, the chair of the committee on governmental operations, state and local, state and federal legislation. I want to thank all the members of the public who have joined us today, as well as colleagues, the indomitable fabulous chair of finance, the Linda Lee, Councilmember Jay Sanchez, Hank Swong, Narcisse Car Morano, and I think on Zoom we have Paladino. Today it's a very strange sort of hearing, but we'll be we will conduct oversight of the rollout of the pied de terre tax. The most recent state budget included a surcharge on property that does not serve as a primary residence, but is more commonly referred to as a pied de terre. There has been a lot of confusion around the city's rollout of the pied de terre tax. First, the Department of Finance published on its website a list of around 900,000 residents that it said could potentially be subject to the tax, even though the controller estimated in June that less than 14,000 properties would be subject to the tax. No estimate of the number of pieditaires in the city comes even close to 900,000. Yet the city still published the list with the small caveat that the properties on the list may be subject to the charge. The list published by the Department of Finance was so overbroad that it even included my name. And I don't mind my name and my home address, but I've been in that damn home for 365 days a year since 1994. I don't leave the city, and I don't have a second home. We want to know today how all of those names ended up on the list and why the Department of Finance published a list of property owners when admittedly they knew that the vast majority of the properties on the list were not in fact used as a peer de tier. Finance ultimately only sent notifications to around 17,000 property owners notifying them that they would be subject to the tax. That number is still larger than most estimates. We have received calls from constituents who received these letters, even though the property listed is their primary residence and has been for many years. Homeowners who believe that they received the letters in error initially had only a short window to contest the surcharge. Although the deadline was ultimately extended by four weeks, this still puts a burden on property owners, which upset people tremendously. They have to prove, not the city, that the property in question is their primary residence rather than, as I said, the onus being on the city to ensure that only properties being used as the pied de terre are subject to the tax. For example, the co-op and condo abatement already requires that property owners submit documentation showing that the units are owner-occupied. So DOF should already know that these units are not pied de terre. DOF should have use of the information they already had before publishing people's names and addresses and requiring them to affirmatively prove again that they reside in the city. Not only does this create a burden for tax-paying New Yorkers, but now finance needs to spend time and resources processing every application for an abatement and collecting and verifying documentation that already has collected and verifying, in my opinion, wasting public resources. Because either they are using the property as their primary residence or because they are eligible for some other exemption. Both the mayor and finance commissioner Richard Lee, for whom we have great respect, have already acknowledged that the records that they were using to identify properties subject to the tax were outdated, and that they knew when they posted the initial list that included a large number of properties that would not be subject to the tax. I think we all want to know why the city published a list that it knew was not accurate. Like many of my constituents, I have a lot of questions about this tax that we are hoping to get answers to. I do want to thank the council staff members who made this possible from Government Operations Committee, Johari Frazier, Erica Cohen, and Sigma Halmid and from the Finance Committee, Brian Sarfo and Owen Kutowski, and Cynthia Hornick from my office and everybody else. I do want to also say I do thank the Department of Finance because they have been helpful for those constituents who need help. I don't want people to think that has not happened because it has. Now I'm going to turn to the wonderful Chair Lee. Great. Thank you so much, Chair Brewer. Um, and good afternoon, everyone. Welcome again to today's oversight hearing on the implementation and rollout of the city's Pieditaire Tax, also known as the non-primary residence property surcharge. The Pieditare Tax was enacted as part of the state's fiscal year 2026-27 budget and took effect on July 1st, 2026. The surcharge applies to one to three family homes valued at 5 million or more, as well as condominium and cooperative units valued at 1 million or more that do not serve as the owner's primary residence. Properties that serve as the primary residence of the owner, an immediate family member or a qualifying uh tenant are not subject to the surcharge. Since implementation began, uh Department of Finance has mailed notices to approximately 17,000 property owners identified as potentially subject to the surcharge and has published a supplemental role listing more than 900,000 properties that may fall within the taxes scope. Given the scale of this rollout and the number of New Yorkers who have been affected, it is crucial that this council conduct oversight of how the administration is planning on implementing this new tax. Following litigation initiated by a group of city homeowners, the administration extended the deadline for property owners to file exemptions from late August to September 18th. Still, even with the extension, we seek greater guidance for those impacted to ensure that this rollout is smooth.
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