New York Gov. Kathy Hochul is passing the blame for the messy pied-à-terre tax rollout onto New York City as a legal battle over the new surcharge continues to play out.
New York City Mayor Zohran Mamdani announced letters notifying city residents who may fall under the new tax started going out on July 23, and a list of properties that could receive the new surcharge was published as well. However, the city said, "the vast majority of properties and units listed in the roll will NOT be subject to the surcharge," which is where issues began to arise.
Earlier this week, a Staten Island judge issued a temporary restraining order on the city's pied-à-terre tax launch in response to a lawsuit filed by homeowners claiming the city mishandled how they identified who would have to pay the new tax, USA TODAY reported. The city immediately filed to appeal the decision, however, which means the rollout can continue until a higher court takes a closer look at it.
Hochul was asked about the process by reporters on Monday, Aug. 10, to which she said the state is "not responsible for the rollout."
"It's up to their city tax department," the governor said. "They have possession of the tax rolls. They're the ones that make a determination on who should pay this."
She added that she knows the rollout has caused "a lot of frustration" and is "very complicated" and says she "will encourage City Hall to try and streamline this."
The pied-à-terre tax plans to annually charge one-, two-, and three-family homes valued at more than $5 million as well as condominium and cooperative units valued at $1 million or more when owners have a separate primary residence outside of New York City.
Around 17,000 residents received letters from the city and they have until Sept. 18, which was extended from an initial Aug. 21 deadline, to prove they don't meet the guidelines for the new tax.
In a statement to USA TODAY, a spokesperson for the mayor said they "disagree" with the recent ruling but are "confident in both the pied-à-terre surcharge and the City's ability to implement it fairly and effectively." The next hearing for the case is expected Aug. 31.
President Donald Trump chimed in on the pied-à-terre tax rollout on Truth Social on Tuesday, Aug. 11, saying he's "working to see if the Federal Government has any legal right to avert this disaster before it is too late."
"The NYC Pied-a-Terre Tax is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return," Trump also said.
"This dangerous political "experiment" in New York will destroy what was once a great city and state," the president added.
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers' taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at [email protected].
This article originally appeared on Rockland/Westchester Journal News: Hochul says state is 'not responsible' for NYC pied-à-terre rollout