The Billion-Dollar Tax Bill: Calculating New York’s Pied-à-terre Levy

Ken Griffin’s real estate portfolio in New York City is set to trigger a tax bill of roughly $1.4 million annually, as city officials finalize the details of a new levy targeting non-resident property owners. The Citadel CEO, who resides in Miami, remains a focal point in the debate over the city's new revenue measure.

The tax targets an estimated 10,000 properties owned by individuals who maintain residences elsewhere. For Griffin, the costs stem from his extensive holdings, including a $240 million penthouse on Central Park South and two units at 740 Park Avenue. While these figures appear substantial, the final amount remains subject to the city’s complex assessment process. Experts like appraiser Jonathan Miller note that the city’s current assessed values rarely align with actual market pricing, a discrepancy the new tax code aims to rectify over the next two years.

Under current rules, condos and co-ops face a maximum rate of 6.5% on their assessed value, while single-family homes are taxed at lower rates. The city plans to overhaul its assessment mechanism to better capture market value, eventually shifting all pied-à-terre properties to a 0.8% to 1.3% rate structure. Griffin, who has publicly criticized the tax as an affront to success, is not the only high-profile figure affected. Former Starbucks CEO Howard Schultz and Donald Trump both hold significant New York real estate that qualifies under the new law. Conversely, Jeff Bezos, who owns at least five apartments at 212 Fifth Avenue, has expressed support for the measure, suggesting the city’s approach is a reasonable fiscal policy.