Mamdani puts rich second-home owners in new York on notice for pied-à-terre tax: 'You've got mail' - Business Insider

What the report says

Business Insider reported that New York City Mayor Zohran Mamdani said the city has begun notifying owners of high-value second homes that they may soon face a new pied-à-terre tax. In a Thursday post on X, Mamdani told owners of non-primary residences in the five boroughs valued above $5 million to watch for mail from the city, saying notification letters had been sent.

According to Business Insider, the tax was approved in May and applies annually to non-primary homes assessed at $5 million or more. The rate is structured progressively, beginning at 0.8% and rising to 1.3% for properties worth at least $25 million. City and state officials have estimated that the measure could generate about $500 million per year and affect more than 11,000 homes.

The mayor’s office said New York’s Department of Finance sent letters to property owners who may be covered by the tax, and the city has also created a webpage with frequently asked questions and a tool to help owners determine whether they are subject to or exempt from the levy. Mamdani framed the policy as a way to support public services such as parks, libraries and schools.

Business Insider noted that the measure is controversial and could reach prominent wealthy second-home owners, including billionaires with major New York properties. The outlet also cited Mamdani’s earlier public focus on Citadel CEO Ken Griffin, who owns New York units including a penthouse purchased for $238 million in 2019.