Co-ops Face Building-Wide Bills as NY Pied-à-Terre Tax Looms
New York’s pied-à-terre tax targeting luxury non-primary residences could force co-op boards to pay the surcharge for absentee shareholders, since co-ops are taxed as a single property and pass the cost to shareholders. With no individual tax parcels, a non-paying unit could create a building-wide lien, potentially impacting financing and requiring boards to front large sums before recovery, especially in smaller buildings; some boards are already considering restricting pieds-à-terre as a precaution, while officials say the policy targets a narrow class and includes enforcement tools for the city.
