United States: Property Taxes

This amendment increases the homestead exemption, for all non-school taxes, to $150,000 in 2027, and $250,000 in 2028, and adjusts for inflation thereafter. It requires the legislature to prescribe a uniform procedure for counties and municipalities, for their respective levies, to increase the homestead exemption up to full assessed value, and allows special districts, subject to referendum approval, to do the same.

The U.S. Supreme Court's decision in Pung v. Isabella County addresses whether former property owners are entitled to fair market value or only surplus proceeds when their property is sold at a tax foreclosure auction. This ruling clarifies the constitutional measure of compensation following tax sales and has significant implications for counties, municipalities, tax-lien investors, and delinquent taxpayers navigating the balance between tax collection and property rights.

Milbank LLP attorneys examine the implications of New York's pied-à-terre tax for common estate planning structures and situations, analyzing the basic mechanics of the surcharge and discussing key ambiguities in the statute. The article explores potential pitfalls that practitioners should consider when advising clients on property ownership and estate planning in New York.

In the weeks since New York City's enactment of a Pied-à-Terre (PAT) tax, or surcharge, on homeowners in late May 2026, multiple additional flaws in the legislation, including those contained in the rules issued...

The New York State Legislature recently enacted the Pied‑à‑Terre Tax (PAT) Surcharge, introducing a significant, additional annual real estate tax on certain high-value New York City residential properties...

Now that we are halfway through 2026, we want to provide a summary of the proposed and enacted wealth taxes emerging in states and localities. Our mid-year update surveys six recent developments...

New York State has enacted a controversial Pied-A-Terre Tax targeting non-primary residences in New York City valued above certain thresholds, creating unprecedented administrative burdens for cooperative boards...

The Qualified Opportunity Zone program has undergone a major transformation with the passage of the One Big Beautiful Bill, shifting from a temporary framework to a permanent fixture with enhanced incentives and new rural investment categories.

Recent tax developments include New York City's new property tax surcharge on high-value pied-à-terre homes and potential changes to IRS Form 1040 that would require disclosure of citizenship status and dual citizenship. These policy shifts reflect growing efforts to address tax equity in luxury real estate markets and enhance transparency in tax reporting for individuals with complex international ties.