A Staten Island judge has temporarily blocked the implementation of New York City's pied-à-terre tax, which was proposed by Mayor Zohran Mamdani. Judge Wayne Ozzi issued a temporary restraining order that requires the city to remove its published tax roll, which includes over 900,000 properties, and prohibits officials from taking further action on approximately 17,000 warning notices already sent to property owners. This order also pauses related deadlines while a lawsuit challenging the tax's implementation proceeds.
The tax applies to certain properties in New York City that are not used as primary residences and are valued at $5 million or more, as well as condominiums and co-ops valued at $1 million or more. The lawsuit, brought by homeowners Rachel O’Brien, Carmine Morano, and Simon Hedley, does not challenge the tax itself but argues that the city’s Department of Finance is improperly placing the burden on property owners to prove they do not owe the tax.
Randy Mastro, a lawyer for the plaintiffs, criticized the rollout of the surcharge. The city has published a searchable tax roll with information on about 900,000 properties, which has raised privacy concerns among homeowners. The Department of Finance stated that most properties on the roll are not subject to the surcharge and that only around 17,000 property owners who received warning letters may be affected.
Mayor Mamdani stated that his administration would defend the tax's implementation in court, asserting its legality and fairness. The next hearing in the homeowners' lawsuit is scheduled for August 31.