Max Biedermann and Michael Hilkin unpack the ambiguity of NYC's pied-à-terre tax in Tax Notes State

Tax Notes State recently published a byline from Max Biedermann and Michael Hilkin unpacking the legal and practical ambiguities that remain in New York City’s pied-à-terre tax now that the Department of Finance is administering it under final implementing regulations.

Max and Michael highlighted several unresolved questions facing property owners and advisors. Chief among them is how ownership through partnerships, LLCs, and trusts is treated for purposes of the tax’s primary-residence exclusion. They also pointed to a gap in the rules for multitier holding structures, which may deny the exclusion even when the ultimate beneficial owner lives in the property. The added complexity for cooperative corporations is also under discussion, which must collect the tax at the building level from individual tenant-stockholders and may face liquidity strain in doing so.

With the DOF’s exemption-filing deadline now set for October 6, the authors urged practitioners to confirm whether clients have received notices and begin preparing supporting documentation without delay.