New York City Council members confronted empty chairs at an oversight hearing Tuesday after Mayor Zohran Mamdani's administration declined to testify on the rollout of a controversial new tax on luxury second homes.
The administration cited a pending lawsuit against the pied-à-terre tax as its reason for skipping the session. Council members said the no-show left basic questions unanswered about how the surcharge is being administered and why some homeowners were mistakenly included on the tax list.
"We're asking basic questions about how a major tax was administered," Frank Morano of the New York City Council said.
The council heard from critics who warned the tax is affecting more than its intended targets. "It's not only billionaires. It's hardworking New Yorkers who dedicate themselves to making this city work that are very concerned about what impact it might have," one witness said.
Mayor Mamdani introduced the tax earlier this year as a measure aimed at the wealthy. "This pied-à-terre tax is specifically designed for the richest of the rich," Mamdani said in a video.
The city put thousands of homeowners on notice that they could be subject to the tax and gave them a deadline to prove they are not. Councilmember Kamillah Hanks called the list "a hit list of the haves and the have-nots, a 'scarlet letter,' letting everyone know that we know who you are and we see you."
Councilmember Phil Wong said constituents should not need legal help to establish residency. "My residents in my district shouldn't have to hire lawyers to prove they live in their own home," Wong said.
The Finance Commissioner provided written testimony but did not appear. The statement said the department "is committed to ensuring that this surcharge is only applied to those properties that are subject to the surcharge under the law" and pledged clear communication about the new policy.
Council members said the written response was insufficient. "I think New Yorkers are entitled to ask a very simple question: What are they hiding?" Morano said. The Finance Commissioner has offered to testify at a future date.
Critics in both parties say homeowners are being presumed guilty unless they prove residency.