NYC Mayor Zohran Mamdani’s plan to impose a tax on luxury second homes has hit a legal setback. A judge has temporarily halted key parts of the city’s rollout. This happened after homeowners sued over the administration process of the new tax. The ruling puts the program on hold as the dispute moves through court.
A judge temporarily blocked New York City’s pied-à-terre tax process after homeowners sued
A New York judge has temporarily blocked the city from advancing its new pied-à-terre tax program after homeowners filed a lawsuit challenging how the surcharge is being administered. The ruling puts the rollout on hold as the court considers the case.
Judge Wayne Ozzi issued a temporary restraining order on Monday in response to the lawsuit, filed by NYC homeowners. Former First Deputy Mayor Randy Mastro represented the latter. The legal challenge focuses on the city’s publication of a list with over 900,000 properties that could potentially be subject to the tax. It also included notices sent to approximately 17,000 property owners.
The court order requires the city to remove the larger property list from public view. It also prohibits officials from taking further action based on that list or the notices sent to the smaller group of homeowners. For now, the city is additionally barred from enforcing its September 18 deadline for owners seeking an exemption.
The surcharge applies to second homes in New York City valued at more than $5 million. The homeowners challenging the program argue that the city has improperly shifted the responsibility onto residents to prove that they are not subject to the tax. Some owners who received notices have also said they are full-time New York City residents, as Politico reported.
Mamdani said his administration would defend the tax in court and maintained that the city’s actions are legally sound. He added, “We are confident in our position. And that is a confidence coming from both the legality of the city’s actions as well as the importance of a surcharge on secondary homes worth more than $5 million.”
A hearing in the case is scheduled for August 31.
Originally reported by Disheeta Maheshwari on Mandatory.
