Construction & Real Estate

Effective July 1, 2026, an owner of "pied-a-terre" co-op or condo unit or 1 - 3 family house located in New York City (referred to as a "Covered Property") is subject to an add-on "pied-a-terre" property tax surcharge (the "PAT Tax") if (a) the Covered Property is not used as "primary residence" and (b) the Covered Property’s "market value" (as set forth on the property tax records) exceeds a dollar threshold (Phase 1 or Phase 2).

When fully implemented, the PAT Tax is intended to apply to a non-exempt Covered Property with a "market value" of $5 million or more. However, because current property tax records pre-date the PAT Tax, the property records are supposed to be updated (under a to-be-determined methodology), so that, in Phase 2, the PAT Tax applies to a Covered Property (regardless of type) starting at a “market value” of $5 million.

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