New York City Council to hold hearing about pied-à-terre tax after rollout creates confusion

New York City Mayor Zohran Mamdani is hiring extra staff to deal with complaints from homeowners as the city rolls out the new pied-à-terre tax. 

There has been so much confusion about the pied-à-terre tax and the way the city notified homeowners, the City Council has scheduled a public hearing to demand answers. 

City Councilmember Gale Brewer is chairing the hearing, and has a lot of questions. 

"What was the state's concept of how this tax should be implemented? Number two, what are the facts? What, exactly, databases were used to determine whether somebody is a resident or not?" Brewer said. 

"I think that it's made a lot of people feel insecure in their homes, and I think that that's really, really a bad sign to send to New Yorkers, many of whom only need one or two more reasons to put up that for-sale sign. And we're trying to make sure people want to stay here and not leave here," City Councilmember David Carr said. 

Brewer lives on West 95th Street, where a number of residents were among the 17,000 who got letters from the city saying they may have to pay the new tax, which is aimed at the wealthy who have second homes valued at $5 million or more, or apartments valued at $1 million or more. 

"I'm getting calls from clients that looked at the roll, and they didn't think their market value was, you know, qualified them for the tax, and they're asking why am I on the roll?" real estate attorney Adrian Diaz said. "I've got clients who the market value maybe does qualify, but they're saying I'm getting a notice, but this has been my primary residence forever." 

Because of the backlash, Mamdani says he's hired two dozen additional people to deal with complaints, and he extended the deadline to seek an exemption. 

CBS News New York's Marcia Kramer asked the mayor if he has any regrets about how it was rolled out. 

"Look, I continue to believe that the pied-à-terre surcharge will raise $500 million on an annual basis. And the importance of this tax is that it is one that will ensure that our streets are cleaner, that our city is safer, that schools are more supported," Mamdani said. 

Kramer asked the mayor three times about whether he had regrets about the rollout, and he did not answer. 

The City Council will be seeking answers from the city on Aug. 18.