Judge Orders NYC to Redo Pied-à-Terre Tax Rollout

A Staten Island judge on Tuesday invalidated New York City's rollout of its new pied-à-terre tax on luxury second homes. Justice Wayne Ozzi ordered Mayor Zohran Mamdani's administration to cancel notices sent to property owners and restart the process of determining who owes the surcharge.

The ruling found the Department of Finance improperly shifted the burden to homeowners to prove they were not subject to the tax. The judge criticized the city for sending letters to hundreds of thousands of residences without first verifying which properties were actually second homes.

“The ultra-wealthy are fighting in court to avoid paying their fair share.”

The city must now assess eligibility before sending new notices, rather than forcing residents to seek exemptions retroactively. Plaintiffs, who are full-time city residents, argued the flawed process caused financial harm and privacy violations.

The surcharge, which took effect July 1, applies to high-value homes and condos not used as primary residences. The city had projected at least $500 million in annual revenue from the tax, a signature Mamdani policy.

Mayor Mamdani's spokesperson called the decision wrong and said the city will invoke an automatic stay by appealing the ruling. The administration vowed to continue implementing the tax while the legal process continues.