New York City’s annual pied-à-terre tax is moving ahead after the state legislature approved the measure in May, despite confusion, privacy concerns and a legal challenge. The levy initially applies to one-, two- and three-family homes worth more than $5 million, as well as condos and co-ops valued by the city at more than $1 million, when they are not used as an owner’s primary residence. The city sent warning letters to roughly 17,000 property owners and published a searchable database containing more than 900,000 properties, owners and valuations; only a fraction will ultimately owe the surcharge. A lawsuit by three homeowners briefly halted the process, but the city appealed and advisors are telling clients to prepare to pay while the case proceeds. Owners have few credible workarounds: the property must generally be occupied by an immediate family member, a primary-residence tenant, an LLC majority stakeholder or a trust’s sole beneficiary, or the owner can challenge the assessment or sell. The city’s valuation formula can produce figures far below market prices, but the resulting tax can still be substantial. The mayor’s office expects about $500 million in annual revenue, and Business Insider colleagues estimated that Ken Griffin could owe an additional $1.3 million to $1.4 million on three New York holdings.