Key Takeaways
- An appellate stay allows New York City to continue the pied-à-terre surcharge rollout while litigation over the implementation process remains unresolved.
- The surcharge targets qualifying non-primary residences, with exemption applications due Sept. 18, 2026, for owners who received city notices.
- Property owners and boards should preserve notices, document primary residence status and seek counsel when surcharge eligibility or property identification is uncertain.
A New York State Supreme Court justice in Staten Island issued a temporary restraining order on August 10 affecting New York City’s pied-à-terre surcharge rollout. The order directed the city to pause certain implementation steps, including further action based on notices sent to property owners and the public posting of the related assessment roll.
On August 13, however, an appellate judge in Brooklyn stayed that order while the higher court determines whether to take up the city’s challenge. As a result, the city may continue implementing the surcharge for the time being. The underlying litigation and the plaintiffs’ challenges to the city’s rollout process remain unresolved.
About the Pied-à-Terre Surcharge
The surcharge applies to qualifying non-primary residences, including apartments valued at $1 million or more and single-family homes valued at $5 million or more. The challenge has focused principally on the city’s identification of potentially affected properties and its exemption process and not the underlying legality of the surcharge itself.
The city reportedly mailed approximately 17,000 notices to owners who may be subject to the surcharge. The deadline to seek an exemption has been extended to September 18, 2026.
The underlying lawsuit remains pending, and a hearing before the Staten Island court is still scheduled for August 31, 2026. The appellate stay permits the city to continue implementation in the interim.
You can read more about the New York City pied-à-terre surcharge and its implementation in our other recent articles:
- NYC Pied-à-Terre Tax Exemption Deadline Extended to September 18, 2026
- NYC Pied-à-Terre Tax: 13 Practical Examples of When It May — and May Not — Apply
- What Co-op, Condo and Investment Property Owners Should Know About NYC’s Newly Passed Pied-à-Terre Tax
Actions Needed Now
Owners and boards should now:
- Preserve all notices and correspondence received from the city.
- Determine whether the property is a primary residence and gather supporting documentation.
- Consult counsel if the property appears to have been identified incorrectly or if there is uncertainty about the property’s status.
Boards and managing agents may wish to alert potentially affected owners that the surcharge process is active while the litigation continues.
PKF O’Connor Davies Observation
The appellate stay means the city may continue processing applications. Therefore, be mindful of the September 18 exemption deadline. We will monitor the August 31 hearing and subsequent guidance from the city and provide any update as soon as it becomes available.
Contact Us
Our professionals are available to assist you with tailored guidance. For specific inquiries regarding the above, please reach out to your PKF O’Connor Davies client service team or:
Samuel E. Botta, CPA
Partner
sbotta@pkfod.com | 646.699.2857
Steven J. Eller, CPA, JD
Partner
seller@pkfod.com | 551.249.1836