Overview
- The city released the proposed Department of Finance rules this week and the public comment period runs through July 9, after which the rules will take effect.
- The Department of Finance will notify owners it deems eligible by August 30 under the new regime and those owners will have 30 days to file an appeal with the Tax Commission or the DOF.
- The rules let the DOF audit records back six years, issue subpoenas, demand documents, and impose penalties of up to 50% of the surcharge for false or misleading information.
- The surcharge targets non‑primary, largely unoccupied homes and uses clear value thresholds and rates: one- to three‑family homes worth $5 million or more face roughly 0.8%–1.3%, while co‑ops and condos assessed at $1 million or more face about 4%–6.5%, with city estimates of $340 million–$500 million a year in revenue from roughly 10,000 properties.
- Real estate groups warn the rules will create heavy administrative work for co‑op boards, invite legal challenges over eligibility and valuation, and set up a phase two reassessment of co‑ops and condos in about two years with the surcharge scheduled to lapse in 2031 unless the state renews it.