New York City has sent letters to folks that city bureaucrats claim are pied-à-terre home owners that contain warnings of impending tax bills on those properties. Many of those homes are primary homes clearly held by their owners, and many others are primary homes that are held in trusts or by LLCs as entirely legitimate devices those homeowners use to mitigate estate taxes and to make things easier for heirs.

Worse, the city is trying to require the home owners to prove their homes are primary residences and not secondary. This throws into a cocked hat the American requirement that government must prove its case, not the one the government is charging or the one government is billing.

It’s true enough that trusts and LLCs can confuse, for some, the ownership of the residence in question. City bureaucrats and their boss, DSA/Progressive-Democrat Mayor Zohran Mamdani, are among the some who are confused, and they’re whining about it.

City officials have said they don’t always have the information they need about a home to know whether it is a primary residence. As a result, they have sent out more notices to homeowners than the tax will ultimately apply to.
“Part of the point of this outreach from the Department of Finance is to ascertain whether or not that reflects a primary residence or not,” Mayor Zohran Mamdani said at a news conference last month, referring to homes owned by trusts and LLCs. “One of the reasons that this is being done now is to ensure that New Yorkers have requisite time before the implementation of the surcharge.”

New Yorkers don’t need any time at all for the city to ascertain whether or not the residence in question is a primary residence or not.

The onus is on the city to prove it is not. If the city’s bureaucrats do not have the information they need about a home to know whether it is a primary residence, then they don’t know that the residence is a pied-à-terre, and if they don’t know, they cannot claim that it is. Thus, no pied-à-terre tax is owed.

The question is answered by a simple declaration by the owner, just as with Federal income taxes, with liabilities attached to lying about the matter, just as with Federal income taxes. And just as with Federal income taxes, city bureaucrats can, after the fact, ask for more information, but they cannot be allowed to assign ownership on their own claim and demand a priori the homeowner prove the contrary.

Of course, it may take a court case to enforce this requirement.