New York judge orders city to scrap Mamdani’s pied-à-terre tax rollout

Key Points:

• A Staten Island judge ruled against New York City’s rollout of the pied-à-terre tax, which targets secondary homes valued over $5 million, citing improper identification of primary residences and flawed notification processes.
• The ruling mandates the removal of the initial tax roll listing over 900,000 homeowners and the cancellation of approximately 17,000 mailed notices, with new notices to be sent only after individualized determinations by the Department of Finance.
• Plaintiffs argued the city failed to comply with state law by burdening homeowners to prove residency, while city officials defended the tax as a fairness measure targeting luxury second homes to fund public services.
• The city plans to seek a stay on the ruling, and separate lawsuits have been filed challenging the tax’s constitutionality, citing discrimination against nonresidents and retroactive application.
• The pied-à-terre tax was introduced as part of Mayor Zohran Mamdani’s 2027 budget to address the city’s budget gap, with backing from Governor Kathy Hochul, amid efforts to make New York more affordable.