New York City recently released a list of approximately 960,000 properties that may be subject to the “Non-Primary Residence Surcharge,” commonly known as the Second Home Tax. However, many owners who have been living in these properties for an extended period of time were mistakenly included on the list. The public disclosure of owners’ names and addresses before verifying their eligibility quickly sparked controversy.
Staten Island Borough President Vito Fossella, along with several affected residents, publicly criticized the list on July 30th, describing it as “grossly inaccurate” and likening it to creating an “enemies list.” Fossella pointed out that many residents clearly qualify for the primary residence exemption but were unjustly listed. He demanded the immediate withdrawal of the list, correction of errors, and suggested that the list should only be made public after a thorough verification process.
According to the terms of implementation, the surcharge applies to high-value residences that are not the owner’s primary residence. Currently, the thresholds are properties valued over $5 million for single to three-family homes (Class 1), and condos or co-ops assessed by the city’s finance department to be worth more than $1 million. The city aims to raise public revenue through this measure to invest in housing and infrastructure.
However, the city’s approach of “list first, prove later” for all properties meeting the criteria has faced strong backlash. Owners of regular homes and condos are required to submit proof of primary residence by August 21st, while co-op owners have until August 24th. Failure to raise objections in time will result in the surcharge appearing on the 2027 property tax bill dated January 1. Real estate professionals and owner associations question the transfer of responsibility and costs for verifying eligibility onto property owners.
The “Second Home Tax” policy has been contentious since its announcement. Supporters argue that affluent individuals with high-value vacant properties should bear more public financial responsibility, while opponents warn that excessive taxation could negatively impact the high-end real estate market and potentially lead to capital and high-income individuals moving elsewhere.
Recently, Mayor Mamdani visited the private residence of hedge fund Citadel founder Ken Griffin in Manhattan to film a promotional video for the policy. Griffin publicly criticized the politicization of private residences, stating that it threatened the privacy and security of homeowners and their families.
The Department of Finance clarified that the list currently published is a “preliminary list” meant to notify potentially affected owners. Owners who believe they do not meet the tax criteria can file an appeal before the deadline. After reviewing the documentation, the city will finalize the tax roster by the end of the year.