A New York state court in Staten Island heard arguments Monday afternoon from both NYC homeowners as well as the Mamdani administration in response to a lawsuit filed by certain NYC homeowners earlier in August. You can read more about the tax itself here and the legal challenges here. While we await final rulings on the lawsuit, which could materially alter the rollout of the new NYC pied-à-terre tax, there have been a couple of other key updates to consider.
- Exemption application due date pushed back (again) – now, NYC will be accepting applications for exemptions from the new tax through October 6, 2026.
- List of properties potentially subject has been reduced – after NYS provided NYC with 2025 state tax return data early, some of the original 17,000 property owners who received letters earlier this summer have been cleared of the new tax. Still, around 11,000 property owners can expect updated letters from NYC notifying them again of potential liability for this property tax surcharge.
Though further changes could be introduced to this tax vis-à-vis court rulings in the coming days, if you received a letter indicating you may be subject to the tax, then WilkinGuttenplan suggests moving forward with any exemption applications necessary by the new October 6, 2026, deadline.
