New York State Enacts Pied-à-Terre Tax on Expensive Non-Primary New York City Residences

New York Real Estate Practice Group Leader Stuart Saft published an article in the Real Estate Finance Journal detailing New York's new pied-à-terre tax on non-primary residences in New York City. Effective July 1, 2026, the surcharge applies to "covered owners" that include owners of residential property, co-ops and condos and is rolling out in two phases. In his article, Stuart provides a detailed outline of the phases of implementation from the New York Department of Finance (DOF) and explains how the law treats different types of property (Class 1 houses) and cooperative boards, along with the DOF's enforcement options. The piece notes the many unresolved questions and potentially problematic provisions in the legislation, such as whether the levy applies to individual apartments or an entire building and how a co-op board should determine primary vs. non-primary status for shareholder units. Stuart concludes by summarizing the City Comptroller's report on the pied-à-terre tax and calling out important questions for residents and property owners to consider while implementation continues.

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