More than 31,000 properties across New York City could be subject to the city’s new , far exceeding the initial estimate of about 10,000 properties when the measure was approved earlier this year, according to Bloomberg.
The list, published on Friday by the New York City Finance Department, identifies properties that may be liable for the new non-primary residence property surcharge. However, officials said the list is preliminary, and many properties could be removed after owners file appeals.
Initial list exceeds earlier estimates
According to Bloomberg, city and state officials had estimated in May that roughly 10,000 homes would fall under the new tax. The latest data identifies more than 31,000 properties with market values above the thresholds that could trigger the surcharge.
The preliminary list includes:
-More than 6,800 Class 1 properties, including one-, two- and three-family homes and townhouses.
-More than 24,700 Class 2 properties, including condominiums and co-operative apartments.
“This is the list that the Department of Finance will use to identify properties that are potentially subject to the new non-primary residence property surcharge,” a Finance Department spokesperson said, according to the news outlet.
Why is New York introducing the tax?
The tax was included in New York state’s $277 billion budget after being championed by Governor Kathy Hochul.
The , helping New York City Mayor reduce a multibillion-dollar budget deficit.
Concerns over luxury housing market
The rollout is being closely watched by the real estate industry amid concerns that the new levy could discourage purchases of .
Industry executives have warned that some owners may decide to sell their properties rather than pay the surcharge.
Property-tax experts also say the city’s initial list is likely to include homes that ultimately qualify for exemptions.
Appeals process begins
Property owners began receiving notifications on Thursday and will receive tax bills by August 30.
According to Bloomberg, homeowners will have 30 days after receiving formal notice to challenge the surcharge.
The city has also launched an online portal explaining eligibility requirements, exemptions and the appeals process.
A final list of taxable second homes is expected to be published on December 31.
How the tax will work
The surcharge will be introduced in two phases.
First phase
During the first two years:
-Single-family homes valued at $5 million or more will pay tax rates ranging from 0.8% to 1.3%.
-Condominiums and co-ops worth at least $1 million will face tax rates between 4% and 6.5%.
Second phase
Beginning July 1, 2028, all qualifying luxury homes will be taxed under a revised valuation system.
Under that structure:
-Properties worth $5 million to $15 million will pay 0.8%.
-Homes valued between $15 million and $25 million will pay 1.05%.
-Properties worth more than $25 million will pay 1.3%.
-Officials promise transparent implementation
Can homeowners challenge the tax?
Yes.
The Finance Department has outlined an appeals process:
Property owners will begin receiving tax bills by August 30.
They will have 30 days after receiving formal notice to contest the surcharge.
The city has launched an information portal explaining exemptions and appeal procedures.
A final list of taxable properties will be published on December 31.
Officials also said specially trained staff and 311 operators will assist homeowners with questions and appeals.
Why is the tax controversial?
The new levy has divided policymakers and the real estate industry.
Supporters say
It targets owners of expensive second homes rather than primary residences.
It will generate around $500 million annually.
The revenue will help reduce New York City’s budget deficit.
Critics argue
Real estate brokers, tax lawyers and developers warn the tax could:
Reduce demand for luxury homes.
Encourage second-home owners to sell their properties.
Create uncertainty because ownership structures can be complex.
Lead to numerous legal challenges over exemptions.
Industry representatives have also questioned whether the tax will ultimately raise as much revenue as projected if many property owners successfully appeal.
