
New York City property owners who may qualify for an exemption from the city’s new pied-à-terre surcharge have been given additional time to file, with the deadline now extended to October 13.
The Department of Finance announced the extension Tuesday, just as the previous deadline was set to expire. More than 5,200 exemption applications have already been approved.
The extension comes as the city continues to defend the rollout of the controversial surcharge in court. An appeals court ruled Tuesday that the city can continue implementing the tax while it considers a legal challenge to the way homeowners were notified. The decision temporarily puts on hold a September 29 ruling by a Staten Island judge that had ordered the city to restart its notification process.
The surcharge applies to certain non-primary residences, including one-, two- and three-family homes valued above $5 million and condominium or cooperative units valued at $1 million or more. Properties used as a primary residence by the owner, certain family members or qualifying tenants may be exempt.
The rollout has faced criticism after the city sent notices to roughly 17,000 property owners and published information involving hundreds of thousands of properties. The Staten Island judge previously found problems with the city’s notification process, while the city has appealed that decision.
Jae Ko, a spokesperson for the Department of Finance, said the legal challenges have complicated the process but that the administration wants property owners to have sufficient time to respond.
“These meritless lawsuits have created a lot of unnecessary confusion. Nevertheless, the Administration remains fully committed to ensuring that New Yorkers have the time and information they need to apply.”
The tax itself is also facing separate legal challenges. Former U.S. Commerce Secretary Wilbur Ross and casino executive Steve Wynn are among the plaintiffs challenging the levy, arguing that it improperly singles out property owners who live outside New York City. That case attacks the legality of the tax itself, rather than simply the way the city implemented it.
Despite the litigation, the city is continuing with the rollout for now and plans to include the surcharge on property tax bills due January 1. The appeals court has said it expects to rule on the underlying implementation dispute by November 10.
Property owners who believe they qualify for an exemption should take note of the new October 13 deadline while the legal challenges continue.