New York City Mayor Zohran Mamdani’s pied-à-terre tax has been blocked by a Staten Island judge following a lawsuit filed by homeowners who alleged the tax rollout was improperly handled.
The tax is designed to target the owners of luxury second homes – condominiums and co-ops valued at a minimum of $1 million and one- to three-family homes valued above $5 million.
Politico reports Judge Wayne Ozzi issued a temporary restraining order that requires the city take down the searchable database that it published showing 960,000 households with homes valued at $1 million and higher. The majority of those homes are primary residences and not the second homes that are subject to the tax.
Under the judge’s order, the city cannot take further action on the database, nor can it follow through on the letters sent to some 17,000 property owners that the city believes are subject to the tax. The order also prevents the city from enforcing a Sept. 18 deadline forced on property owners challenging the tax.
The lawsuit stated the city “has arbitrarily and capriciously foisted onto New York City residents the burden of proving they are not subject to the Surcharge.” A hearing on the matter is scheduled for Aug. 31.
Mamdani responded to the order by declaring his administration would “vigorously defend” the rollout. He also made a personal attack against former Deputy Mayor Randy Mastro, a critic of Mamdani who represented the plaintiffs in the lawsuit and who previously sued to stop Mamdani’s proposed rent freeze policy.
“There are a few things more certain in New York City than death, taxes and Randy Mastro filing a lawsuit against this administration,” Mamdani said.
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