Mamdani just gave wealthy homeowners more time to avoid his pied-à-terre tax

Wealthy homeowners who might be subject to New York City Mayor Zohran Mamdani's pied-à-terre tax just got more time to avoid it.

Mamdani and Department of Finance Commissioner Richard Lee announced on Saturday that the deadline for homeowners to submit an exemption application has been extended to September 18. That's four weeks past the original August 21 deadline.

"The extension gives homeowners additional time to establish that the property is their primary residence or demonstrate they are not subject to the surcharge," a press release said. "It also provides more time for homeowners to receive assistance from the Department of Finance and have their questions answered before submitting an application."

The press release said the City of New York has expanded its outreach efforts across the boroughs to improve its communication with residents about the tax.

Mamdani's announcement of the extension comes after some residents complained that the rollout was confusing and the notifications unclear. Some New Yorkers told The Wall Street Journal last week that they had been wrongly targeted by the tax. Others said the process to secure an exemption was overly difficult.

Mamdani introduced the pied-à-terre tax in April. It's part of his campaign promise to tax the rich. He has also proposed raising income taxes on the highest earners and the corporate tax rate.

The second-home tax will affect people who own a secondary property in New York City valued at more than $5 million but live elsewhere. The mayor's office said the tax is expected to generate about $500 million in annual revenue.

Property owners who may be subject to the tax were notified by the Department of Finance via letters starting in July.

The tax, also backed by New York Gov. Kathy Hochul, is intended to alleviate New York City's large budget gap. New York City Comptroller Mark Levine said in January that the city is facing a $2.2 billion budget shortfall for the 2026 fiscal year.

The tax has angered some wealthy residents, like Citadel CEO Ken Griffin and billionaire hedge fund manager Bill Ackman. President Donald Trump criticized the tax in an April Truth Social post that accused Mamadani of "destroying" New York City. The mayor's office faced further scrutiny in July after it released a public list of property owners who could be subject to the tax.

"The pied-à-terre tax is an important new tool to help our city collect the revenue we need for safer streets, cleaner parks, and other critical investments across the five boroughs," Mamdani said in the press release. "We are announcing the extension of the exemption application deadline to ensure that New Yorkers who received the 'You may be subject to...' letters have the time and information they need."