New York City officials have unveiled the specifics of the recently approved pied-à-terre tax, a move expected to affect around 10,000 properties, including high-profile residences owned by billionaire Ken Griffin. The tax, announced by Mayor Zohran Mamdani in April, specifically targets individuals with secondary homes in the city. Griffin, the CEO of Citadel, found himself in the spotlight as his luxury real estate holdings became part of the tax discourse.
Griffin, who resides primarily in Miami, owns three notable properties in New York: a record-breaking penthouse on Central Park South purchased for $240 million in 2019, alongside two units in the prestigious Upper East Side co-op at 740 Park Avenue, totaling an investment of $83 million over the past year and a half. Next year, Griffin is projected to incur an additional tax bill of approximately $1.3 million to $1.4 million due to the new levy, according to estimates derived from state budget details, public real estate records, and building documents.
The Central Park South unit, with an assessed market value of $15.55 million from last year, will largely contribute to Griffin’s tax obligation. In comparison, his Upper East Side properties have a combined market value around $6.2 million, reflecting his ownership stake in the co-op.
Critics, including industry experts, have raised concerns over the New York City Department of Finance’s historical tendency to underestimate apartment values. Jonathan Miller, a recognized appraiser and director of markets for StreetMatrix, stated that the assessed values of luxury properties rarely align with market expectations. This newly implemented tax code aims to remedy this issue over the next two years, introducing a new assessment mechanism to provide more accurate valuations.
Under the law, condos and co-ops face a maximum tax rate of 6.5% based on assessed value, while single-family homes will see rates of 0.8%, 1.05%, and 1.3%, depending on value. By July 1, when the new tax takes effect, all pied-à-terre properties will be subjected to these revised tax rates.
Griffin is not alone in facing this new tax; several notable billionaires will owe funds under the law. Among them are former Starbucks CEO Howard Schultz and former President Donald Trump, both of whom own properties in the city but primarily reside elsewhere. Schultz owns a penthouse in the West Village while Trump has retained ownership of a triplex in Trump Tower.
While Griffin has publicly criticized the tax, claiming it suggests New York does not value success, Amazon co-founder Jeff Bezos expressed a supportive stance. Bezos, also a Miami resident and owner of multiple luxury apartments in Manhattan, stated he views the pied-à-terre tax as beneficial for New York City, signaling a contrast in attitudes among wealthy property owners towards the new levy.
