Overview
- Governor Kathy Hochul signed the state budget that includes the pied‑à‑terre surcharge on May 28 and the law takes effect July 1, 2026.
- The charge targets non‑primary single‑family homes, co‑ops and condos with tiered rates and a two‑phase rollout that starts with current Department of Finance assessed values and shifts to comparable‑sales valuations in 2028–29.
- Owners will be notified by August 30, 2026, and common exemptions cover units occupied by owners, immediate family or long‑term tenants; co‑op buildings will receive a single added bill that boards may need to collect from shareholders.
- State and city estimates put revenue at about $500 million a year while the NYC Comptroller forecasts roughly $340–$380 million after exemptions and likely behavioral responses reduce receipts.
- Key implementation questions remain unresolved, including how the city will calculate comparable‑sales values, whether entity‑held properties face look‑through rules, and how appeals and litigation could change tax receipts and owner behavior.