Full Breakdown
Mayor Mamdani’s pied-à-terre tax rollout under fire after City Council hearing sees empty witness table
8/20/2026, 3:04:33 AM
The hearing and the administration’s absence
On August 18, 2026, the New York City Council held a joint oversight hearing on the pied-à-terre surcharge. No city officials appeared; Finance Commissioner Richard Lee submitted a five-page written statement, which Councilmember Gale Brewer read into the record, leaving an empty witness table. Lawmakers posed written questions and heard testimony from homeowners and industry representatives.
Background & Context
The surcharge, approved by Governor Kathy Hochul and the state legislature in May, targets luxury secondary residences: one- to three-family homes valued over $5 million and condo or co-op units valued over $1 million that are not the owner’s primary residence. The city projects the levy will generate roughly $500 million to help close a budget gap and fund services such as safer streets and cleaner parks.
Data & Statistics
- The Department of Finance mailed 17,000 preliminary determination letters to owners on a supplemental assessment roll of about 960,000 addresses.
- As of the hearing, 9,884 exemption applications had been started, 5,001 completed, and 2,318 approved.
- The surcharge could add 0.8 % to 6.5 % of a property’s assessed value, resulting in five-figure bills for many recipients.
Official Statements & Responses
Commissioner Lee’s written testimony acknowledged the volume of questions and said he would testify after the pending court hearing. Council Speaker Julie Menin called the administration’s decision “unfortunate,” emphasizing that oversight is a core function of government.
Criticism & Opposition
Councilmembers from both parties condemned the no-show. Staten Island Councilmember Frank Morano called the absence “outrageous” and said “litigation doesn’t suspend legislative oversight.” Attorney Charles Diamond, a former city counsel, described the decision as “utterly bizarre” and warned that using pending litigation to avoid testimony undermines accountability.
On-the-Ground Reports
Homeowners said the notices placed them in a position where they must prove residency. Kenneth Fishel, a Park Avenue co-op owner, learned of his notice only after a neighbor mentioned it, and the letter listed an incorrect apartment number. Upper East Side resident Robert Bertagna received a notice demanding $52,000 annually despite living in his primary home for three decades. Real-estate broker Jason Haber warned that publishing a list larger than the population of San Francisco creates a “gift to fraudsters and scammers.”
Verbatim Quotes
- “The Administration’s focus remains on ensuring this surcharge can do what is intended to do: generate the revenue our city needs to serve New Yorkers across the five boroughs,” — Matthew Rauschenbach, spokesperson
- “I would have welcomed the opportunity to appear in person and field your questions directly, but the pending and active litigation precludes me from doing so,” — Commissioner Lee
- “Regardless of what’s going on in this administration, they should show up,” — Councilmember Eric Dinowitz
- “They are not here because they don’t want to answer questions,” — Councilmember Vickie Paladino
- “We really aren’t here to dispute the pied-à-terre tax,” — Councilmember Kamillah Hanks
- “It is the City Council’s job to ask tough questions, get numbers and data, and give the public a glimpse behind the government’s curtain,” — Grace Rauh, citizens union executive
What’s Next
The lawsuit challenging the rollout is set for a hearing later in August, and the city has extended the exemption filing period to mid-September. The administration indicated that Commissioner Lee is prepared to testify after that court date.
