00:00Are you committing tax fraud? New York is going to find out.
00:03New York is rolling out a pedaterre tax. It's French for a foot on the ground.
00:06The pedaterre tax is targeting people with secondary homes valued at over $5 million
00:10for a townhouse and at over $1 million for a condo or a co-op.
00:15One of the consequences or benefits, depending on who you are,
00:18is that this tax is acting like a new state tax auditor. People who might file their taxes
00:23in other states to avoid New York's high income tax, people looking to find a cheaper car insurance
00:29quote. They might say that they registered their car in a different state or committing tax fraud.
00:33Even though New York City's Department of Finance is sending out the letters for the pedaterre tax
00:37homeowners, it's New York State that now is looking into this for potential fraud.
00:41And if you get caught committing either income tax fraud or car registration and car insurance fraud,
00:47the consequences are very serious. New York City Mayor Zora Mamdami has been receiving a lot of
00:51flack from the public. People are saying that they've been getting docs as a result of this
00:56new supplemental tax rollout list. Some of the homeowners who have received these letters
01:00who are trying to fight this are a bit upset because it's a guilty until proven innocence
01:04program here. Property owners would have to prove they are exempt from the tax to avoid the surcharge,
01:09a requirement that's now at the center of a lawsuit challenging its rollout. A judge has temporarily
01:13blocked the tax while the case proceeds. For more on the pedaterre tax, you can check out my coverage
01:18on fortune.com.
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