Manhattan Apartment Loses $24,000 Property Tax Abatement
New York City is enforcing residency requirements, costing owners thousands in lost tax breaks and new surcharges.
Updated on Oct. 14, 2026 in Taxes
Live Poll
Should cities impose additional taxes on luxury second homes to increase municipal revenue?
Steve Witkoff lost a $24,000 annual property tax abatement on his Manhattan apartment after records showed he established his primary residence in Florida in 2019. The property is now also subject to a $101,000 annual pied-à-terre surcharge intended for second homes worth over $5 million.
Why it matters
New York City is actively auditing residency to determine eligibility for tax breaks, meaning homeowners with primary residences elsewhere may face significant back-tax payments or the loss of long-standing abatements. The city is currently targeting high-value second homes to boost annual revenue by an expected $500 million.
Homeowners have already paid $78,000 to cover previously ineligible abatement years as the city cracks down on pied-à-terre properties. These residences, valued at more than $5 million, are now subject to a $101,000 annual surcharge.
The players
Steve Witkoff
A property owner who lost a Manhattan tax abatement after establishing primary residency in Florida.
Kathy Hochul
The Governor of New York who warned nonresident claimants about tax abatement eligibility.
Lee Millstein
An individual identified as having received an ineligible property tax abatement.
Ruben Kliksberg
An individual identified as having received an ineligible property tax abatement.
Ronald Olin
An individual identified as having received an ineligible property tax abatement.
The details
The city verifies residency by comparing voter registration and primary residence data against property tax filings. When a property is deemed a second home rather than a primary residence, the owner loses eligibility for specific abatements and triggers a surcharge. Individuals including Lee Millstein, Ruben Kliksberg, and Ronald Olin have also been identified as having received ineligible abatements.
Timeline
In 2019, Steve Witkoff registered to vote and established an estate in Florida.
In 2023, Witkoff's wife moved out of the Manhattan apartment.
In August 2026, Governor Kathy Hochul issued a warning to nonresident claimants.
In September 2026, a judge ordered the city to redo the tax rollout.
Money Landscape
The city's move to claw back tax benefits is part of a broader, ongoing rollout of the New York City pied-à-terre surcharge. This enforcement follows a recent court order requiring the city to redo its tax rollout, an appeal of which is currently underway.
If you own multiple properties, verify your primary residence documentation to ensure your tax abatements are currently valid. Consult a tax professional to determine if your property valuation or occupancy status may trigger a secondary home surcharge.
The takeaway
Tax abatements are not permanent and hinge strictly on maintained primary residency requirements. Property owners should periodically confirm their residency filings with the city to avoid unexpected, large-scale back-tax bills.
Further reading
For more information on how residency status affects your property obligations, visit our guide on Taxes.
Source note: This article includes information reported by Benzinga.
Live Poll
Should cities impose additional taxes on luxury second homes to increase municipal revenue?
