Mamdani says the pied-à-terre tax will still raise $500 million. Finance said the same in June, then skipped the Council's oversight hearing

Mayor Zohran Mamdani said Thursday he is "confident" the city will collect $500 million a year from its new surcharge on high-value second homes, even after thousands of properties were exempted, Gothamist reported.

The city's Department of Finance has granted more than 8,800 of roughly 11,000 exemption applications, according to City Hall figures cited by Gothamist. That leaves fewer than 9,000 properties subject to the tax. In April, Comptroller Mark Levine estimated the surcharge would bring in no more than $380 million from about 11,200 homes. The tax faces three lawsuits, including one by property owners who say the rollout caused "mass confusion" and should be restarted.

Why it matters to residents: the $500 million is built into this year's city budget. If collections fall short, the gap has to be closed elsewhere. The mayor said in the interview, on WNYC's "Who's Running This Place?", that the money will go to safer streets and stronger schools.

The tax applies to second homes worth more than $5 million. Republican candidate for governor Bruce Blakeman has said he would repeal it, Gothamist reported. The state created the surcharge in this year's budget, and the city carries it out.

What our records add

Finance told the Council in June it was confident. At the Finance Committee's June 9 budget hearing, a Council member asked whether the department was ready to run the surcharge and what it expected to collect. A Finance official answered that the department was "confident" it would meet "the revenue target of $500 million" in the executive budget (48:55). Officials described the rates on a sliding scale by property value. A deputy commissioner said owners who struggle to pay can get payment plans (50:28).

Then the administration skipped the oversight hearing. On Aug. 18, the Governmental Operations and Finance committees held a joint oversight hearing on the rollout. Chair Gale A. Brewer said in her opening that the Finance Department had first published a list of about 900,000 properties that might owe the tax, though the comptroller had estimated fewer than 14,000 would. Brewer said her own home was on the list, though she has lived there full time since 1994 (1:56). She said nearly 42,000 owners had applied or were applying for exemptions at that point (4:05).

Finance Chair Linda Lee said the department had mailed notices to about 17,000 owners. She noted for the record that the administration would not testify because the tax was being challenged in court (7:06). The committees heard from advocates and property owners instead and said they would send the department written questions. THE CITY reported at the time that members were angry about the no-show.

The numbers have moved a long way. From the records and reporting:

• Finance's initial published list: about 900,000 properties
• Notices mailed, as of the Aug. 18 hearing: about 17,000
• Exemption requests, as of the Aug. 18 hearing: nearly 42,000 applied or applying
• Comptroller's April estimate of taxable homes: about 11,200
• Subject to the tax now, per City Hall: fewer than 9,000

The figures were counted at different times and in different ways, so they don't add up to one another. But they show how much the pool has shrunk since the summer.

No Council bill on the surcharge. We found no pending Council bill or resolution on the pied-à-terre tax this term. The surcharge is set by state law, so changes would come from Albany.

What's next

The three lawsuits are pending, and the surcharge is set to appear on owners' property tax bills, which Finance officials told the Council in June would drive compliance (54:44). The Council's next look at the revenue will likely come with the mayor's November financial plan update and the preliminary budget hearings early next year.