Judge orders NYC to redo second-home tax notices

A Staten Island judge on Tuesday ordered New York City to cancel notices sent to owners of properties that could face its second-home surcharge and redo the process for deciding who is subject to the tax. Justice Wayne Ozzi said the city must assess properties individually using available information before issuing replacement notices, limiting the order to the tax’s rollout rather than its legality. The decision followed a lawsuit by homeowners who challenged how the city identified potential taxpayers. They argued the city sent warning notices before determining whether the properties were primary residences and required owners to prove they should not owe the charge. Ozzi found that the city’s approach improperly shifted that burden onto homeowners. The city must replace its existing notices with new ones based on a fresh review. The judge also directed it to remove a broad property list and replace it with a narrower list limited to properties that may be subject to the surcharge. The ruling does not prevent the city from enforcing the tax if it follows the required process. The Department of Finance sent notices to about 17,000 owners in July.