Judge Temporarily Blocks NYC Pied-à-Terre Tax Rollout

A New York State Supreme Court judge on Monday temporarily blocked the rollout of Mayor Zohran Mamdani's pied-à-terre tax, halting enforcement of the new surcharge on luxury second homes while a lawsuit challenging its implementation proceeds. The ruling by Staten Island Justice Wayne Ozzi puts the tax on hold until at least an August 31 court hearing.

The order stops the city from taking further action on approximately 17,000 notices mailed to homeowners in July, which informed them they could be liable for the surcharge unless they applied for an exemption by September 18. The judge also required the city to remove a publicly posted database of nearly 900,000 residential properties that had sparked widespread concern among homeowners.

The lawsuit, filed on August 7 by a group of homeowners represented by former First Deputy Mayor Randy Mastro, argues that the city's rollout was flawed. The complaint contends that the administration improperly shifted the burden onto residents to prove they are not subject to the tax, rather than conducting the required individualized determinations first. The plaintiffs, which include family members of City Council Member Frank Morano, cited...