Thousands of NYC homeowners warned they may have to pay the new pied-à-terre tax

Letters have been sent to thousands of New York City homeowners, stating they may have to pay the new controversial pied-à-terre tax. But some residents say they shouldn't be on that list. 

The surcharge is aimed at people who own a property in the city but declare their primary residence outside the Big Apple. It targets homes valued at over $5 million. 

It stems from Mayor Zohran Mamdani's promise to "tax the rich," and will raise at least $500 million directly for the city. The mayor said the move, approved by Gov. Kathy Hochul, helped close a budget gap without slashing essential services. 

As part of the rollout, the city created a database of addresses that "includes but is not limited to those properties that may be subjected to the surcharge," creating confusion for some homeowners. 

Warning letters worry NYC residents 

An 81-year-old woman on the Upper East Side said she's lived in her townhouse full time for 30 years. She has no other residence, yet she received a letter from the city.

The warning stated she has until Aug. 21 to prove she's exempt from the new tax, or she will owe $56,000.

Staten Island resident Eugen Dooley's condo is in the database, but he didn't get a warning letter.

"Retired on Social Security, that's basically the money that I get," he said.

Dooley said he only owns one home.

"Almost like an enemies list"

Borough President Vito Fossella also didn't receive a letter, but his name is listed on the website

"In my case, it's the house I grew up in that my father lives. We both have the same name. He owns it, I have my house," Fossella said. "The danger is it's almost like an enemies list that's being created, the whole notion that property is a bad thing, that the American dream is actually now an American nightmare."

The Curry family is among several homeowners on Annadale Street listed in the index.

"I think it's ridiculous," Thomas Curry said.

"This is all working-class families and children and grandchildren," Debra Curry said.

The city says it's committed to implementing the new surcharge "fairly and efficiently." Officials say that the city launched a dedicated website and hired extra staff to help property owners navigate the new requirement.