Our Practices
Tax Controversies
Pied-à-Terre Tax Counsel
Challenging the New York City Non-Primary Residence Property Surcharge, the “Pied-à-Terre Tax.”
Overview
Cole Schotz P.C. is actively representing property owners subject to New York City’s new Non-Primary Residence Property Surcharge, signed into law by Governor Hochul on May 28, 2026, and effective July 1, 2026.
Many property owners may have grounds to challenge this surcharge through exemptions, valuation disputes, or constitutional arguments. Our team has the experience and knowledge to evaluate your situation and pursue the most effective strategy.
How We Can Help
Our State and Local Tax team provides comprehensive representation in three key areas:
-
Primary Residency Exemptions (Trusts & LLC Structures)
Many property owners hold their NYC real estate through trusts, LLCs, or family limited partnerships. Qualification for the primary residence exemption under these structures requires careful analysis and documentation.
We assist with
- Determining qualification for the primary residence exemption
- Structuring and defending exemption claims for properties held in revocable trusts, irrevocable grantor trusts, and family trusts
- Addressing ownership through LLCs and family limited partnerships (FLPs)
- Ensuring documentation aligns with City requirements for exemption approval
-
Valuation and Assessment Challenges
The surcharge is calculated based on the assessed value of your property. Inflated or inaccurate assessments can result in significantly higher tax liability.
We assist with
- Analyzing property valuations to identify overassessments
- Contesting inflated assessments before the NYC Tax Commission
- Filing administrative appeals and pursuing litigation where warranted
-
Constitutional and Statutory Challenges
There are significant legal questions surrounding the constitutionality and statutory authority of the Pied-à-Terre Tax.
We evaluate and pursue
- Federal and state constitutional challenges
- Statutory overreach arguments, whether the surcharge exceeds the legislature’s delegated authority
- Discriminatory classification claims
- Procedural defects in enactment or implementation
Key Deadlines
Time is of the essence. The following deadlines govern your ability to challenge the surcharge:
| Action | Deadline |
|---|---|
| Primary Residence Exemption Application | October 13, 2026 |
| Valuation Protest, Class 1 Properties | March 1, 2027 |
| Valuation Protest, Class 2 (Condos / Co-ops) | March 15, 2027 |
Schedule a Consultation
We are offering a one-hour paid consultation, including time spent reviewing intake documents, for property owners who wish to explore their options for challenging the Non-Primary Residence Property Surcharge.
During your consultation, our attorneys will
- Review the specific facts of your property ownership and residency status
- Identify potential primary residence exemptions applicable to your situation, including entity and trust property ownership
- Assess valuation challenges and opportunities to reduce assessed value
If you would like to schedule a paid consultation, please begin by filling out the brief form embedded below to initiate the conflict check process. After receiving your submission, our team will reach out to you if additional information is required to complete the conflict check. Once cleared, you may submit payment and book your appointment.
Conflict Check
Before we can engage with you or schedule a consultation, we are required to run a brief conflict check to ensure there is no conflict with an existing client.
Complete the form below to submit the required information to our team. We will respond promptly.
Contact Us
- Estate and Income Tax Planning
- Wealth Preservation (NINGs, DINGs, SLATs, GRATs)
- Special Needs Planning
- Special Purpose Trusts
- International Estate & Tax Planning for Non-Citizen U.S. Residents
- 1031 Exchange
- Qualified Opportunity Zone Program
- QSBS Planning
- Tax Residency: Snowbird Counsel
- Estate and Trust Administration
- Business Succession Planning
- Corporate Tax & Reorganization
- Tax Controversies
- Pied-à-Terre Tax Counsel
- IRS & State Tax Collection Defense
- Sales & Use Tax
- Tax Investigations and Defense
- IRS & State Voluntary Disclosures & Compliance
- International Tax
- Trusts & Estates Litigation, Guardianships and Fiduciary Counseling
Services
Our Professionals
Our Legal Artists
Disclaimer
This webpage is for informational purposes and does not constitute legal advice or establish an attorney-client relationship, which would arise only upon execution of a formal engagement. As the law continues to evolve on these matters, please note that this webpage is current as of October 6, 2026 and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. Results may vary depending on your particular facts and legal circumstances.
