Look-Through Rules Target Entity Owners
New York City's pied-à-terre tax creates a comprehensive beneficial ownership disclosure regime for high-value residential properties held by LLCs, trusts, and other entities. The surcharge applies to majority partners, shareholders, or members in entities that own covered properties, according to DOF guidance, forcing identification of natural persons behind corporate structures.
For entity-owned properties claiming primary residence exemptions, DOF requires both residence documentation and entity agreements plus a Majority Interest Affidavit identifying controlling owners. The Department of Finance states properties are exempt only if they serve as primary residences for individuals who collectively hold a majority interest in the LLC, corporation, or partnership that owns the property.
Trust-owned properties face similar scrutiny. Tax Law § 1351(d)(4) defines covered owners to include beneficial owners of trusts that are sole beneficiaries holding residential property, eliminating trust structures as privacy shields for qualifying properties.
2019 Deed Rules Already Capture LLC Buyers
The pied-à-terre tax builds on existing disclosure requirements. Since September 13, 2019, any LLC buying or selling condominiums or one-to-four family residences in New York must file names, business addresses, and taxpayer identification numbers of all members, managers, and authorized persons with deed transfer documents.
Where LLC members are themselves entities, the 2019 law requires disclosure all the way up through each entity in the organizational chart until ultimate ownership by individual people is disclosed, according to the state Department of Taxation and Finance. This information reaches DOF through transfer tax filings but remains non-public, unlike ACRIS deed records.
The combination creates dual disclosure points: beneficial owners are identified at acquisition under the 2019 transfer rules, then again for ongoing pied-à-terre tax administration through entity documentation requirements.
Scale of Exposure Across Manhattan
Roughly 24,000 residential units citywide would owe the surcharge if used as non-primary residences, according to Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll. Manhattan accounts for over 20,000 of those units, with condos and co-ops representing the largest exposure category.
In Manhattan's 10019 zip code, 975 condo and co-op units fall above the $1 million threshold, with median market values of $1.58 million. The 10013 zip code shows 1,751 exposed units. These figures represent potential liability before primary residence exemptions are applied.
The surcharge is based on DOF market value (the 'Market Value' line on the Notice of Property Value), not assessed value. For condos and co-ops, rates are 4% on market values from $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million.
Owners who received DOF non-primary residence notices have until September 18, 2026, to file exemption applications. The first surcharge payments are due January 1, 2027, for the fiscal year beginning July 1, 2026.
Frequently asked questions
Is my LLC-owned apartment subject to the pied-à-terre tax disclosure requirements?
Yes, the pied-à-terre tax creates comprehensive beneficial ownership disclosure requirements for high-value residential properties held by LLCs, trusts, and other entities. The surcharge applies to majority partners, shareholders, or members in entities that own covered properties, forcing identification of natural persons behind corporate structures.
How much is the pied-à-terre tax on condos and co-ops?
The surcharge rates for condos and co-ops are 4% on market values from $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million. The surcharge is based on DOF market value (the 'Market Value' line on the Notice of Property Value), not assessed value.
Does the ruling change existing LLC disclosure requirements for property purchases?
The pied-à-terre tax builds on existing disclosure requirements that have been in place since September 13, 2019. Since that date, any LLC buying or selling condominiums or one-to-four family residences in New York must file names, business addresses, and taxpayer identification numbers of all members, managers, and authorized persons with deed transfer documents.