New York City Council's pied-à-terre tax hearing to feature only written testimony from Mamdani administration
There are mounting questions and frustration over New York City's pied-à-terre tax, and they're not likely to end soon.
Mayor Zohran Mamdani's office has announced it will not send a representative to the City Council's hearing on Tuesday on the new tax and will instead submit written testimony.
Councilmember Gale Brewer, who represents District Council 6, told CBS News New York on Monday night homeowners are confused about the letters they've received warning them about the tax, and the mounting questions and concerns will be made public Tuesday at the hearing.
A news conference on the tax surcharge will be held at noon on Tuesday, followed by the hearing slated for 1 p.m.
What to expect at the City Council hearing
Several council members are upset about the administration's plans to dodge the hearing. A spokesperson for Mamdani said it is prudent to do so "given the ongoing litigation," referring to a lawsuit filed upon the tax's rollout that some say was botched.
Councilmember Frank Morano blasted the Mamdani administration for its plans not to appear Tuesday, saying, "When the public finally gets a hearing to demand answers, the administration won't even show up."
As for what to expect from the testimony, Brewer said, "We haven't seen it yet," adding, "My experience is when the agencies testify, they don't usually answer questions. They just give their perspective.
"It's very disappointing because it's a very complicated issue," Brewer added.
Brewer said more than 10 pages of questions from residents will be read out loud at the City Council hearing, and co-op organizations will speak out.
"We will get resolution, not tomorrow, but we will get the airing of the issues," Brewer said.
What to know about NYC's pied-à-terre tax
The tax applies to second homes valued at more than $5 million, or co-ops and condos valued at more than $1 million.
Back in July, the Department of Finance sent out letters to 17,000 people it identified as having second home and then published more than 900,000 addresses that could be on the hook for the tax.
Brewer said some full-time residents are upset they're getting letters that say they may be subject to the new tax if they fail to prove they're residents.
"One was $43,000 and the other was $82,000," Brewer said. "Particularly, people want to know, why did I get a letter when I'm a full-time resident?"
The deadline for homeowners to apply for an exemption from the tax is Sept. 18. Earlier this month, the mayor announced that he had hired two dozen people to address complaints tied to the new tax.
A lawsuit by homeowners prompted a temporary restraining order on the new tax, but it has since been lifted.
