NYC Pied-à-Terre Tax Targets Residency Fraud and Funds City Budget

New York City’s pied-à-terre tax on luxury second homes is being rolled out with an exemption process and potential state audits to deter residency fraud, targeting nonresident owners who claim NYC taxes aren’t owed; the tax applies to properties valued at least $5 million (and $1 million for condos/co-ops) with exemptions for certain ownership structures, and about 17,000 letters were sent to homeowners while roughly 2,600 exemption applications have been filed; the program could raise up to $500 million annually and requires exemptions by Sept. 18, with tax bills due Jan. 1.