Steve Witkoff Lost Manhattan Tax Abatement

Real estate figure Steve Witkoff faces a new pied-à-terre surcharge after losing a property tax break.

Updated on Oct. 14, 2026 in Taxes

Steve Witkoff Lost Manhattan Tax Abatement

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Steve Witkoff lost a $24,000 annual property tax abatement for his Manhattan apartment after establishing his primary residence in Florida in 2019. He now faces a $101,000 annual pied-à-terre surcharge on the property.

Why it matters

The abatement was revoked because Witkoff claimed the Manhattan unit as a primary residence while also maintaining an estate in Miami Beach. This move underscores the city's efforts to verify actual residency for tax purposes.

New York City targets second homes worth over $5 million with a surcharge expected to generate $500 million annually. Witkoff already paid $78,000 to cover years where the abatement was deemed ineligible.

The players

Steve Witkoff

He is a prominent real estate investor who established a primary residence in Miami Beach.

Kathy Hochul

She is the Governor of New York who issued warnings regarding nonresident tax claimants.

Lee Millstein

He is an individual identified as receiving an ineligible New York City property tax abatement.

Ruben Kliksberg

He is an individual identified as receiving an ineligible New York City property tax abatement.

Ronald Olin

He is an individual identified as receiving an ineligible New York City property tax abatement.

The details

New York City has implemented stricter residency checks to ensure property tax breaks are granted only to legitimate primary homeowners. Other individuals, including Lee Millstein, Ruben Kliksberg, and Ronald Olin, were also identified as recipients of ineligible abatements.

Witkoff registered to vote and moved to Florida in 2019.
Witkoff's wife moved out of the Manhattan apartment in 2023.
Governor Kathy Hochul warned nonresident claimants in August 2026.
A judge ordered the city to redo the tax rollout in September 2026.

Market Dynamics

This enforcement action aligns with the city's broader implementation of the New York City pied-à-terre tax surcharge. It marks a tightening of residency verification protocols for luxury properties amid city efforts to secure $500 million in annual revenue.

Property owners in New York City must ensure their primary residence declarations match their actual living arrangements to avoid retroactive penalties. Failure to meet these residency standards can result in the loss of tax abatements and the imposition of surcharges.

The takeaway

Taxpayers should regularly audit their residency filings to ensure compliance with local tax abatement requirements. Establishing a primary residence in another state can trigger a loss of local tax benefits and the addition of new surcharges on luxury properties.