NYC officials must start pied-à-terre tax rollout over, judge rules
A Staten Island judge has ordered New York City officials to start their pied-à-terre tax rollout over.
In the ruling, the judge stated the city's rollout "unfairly shifted the burden to thousands of homeowners to prove their basic residency."
Some of the homeowners involved in the lawsuit said their names and properties were included on a published list of individuals subject to the tax even though the property in question was their primary residence, and others said they received a mailed notice at their primary residence saying they may be subject to the tax.
According to the judge's ruling, all of those previous mail notices are now canceled, and new ones have to be mailed out that specifically identify the properties that would have to be taxed.
Attorney Randy Mastro sued the city on behalf of homeowners who say they shouldn't have received letters.
"The Mamdani administration didn't do the work that the statute requires before attempting to impose the tax. Instead, they tried to shift the burden to thousands, even hundreds of thousands of New Yorkers, to think they owed the surcharge, to have to prove they live in their own homes," Mastro said.
Under the judge's order, the city has to remove the published list of homeowners and properties from the Department of Finance website and mail out new notices.
The mayor's office said it will seek a stay of the order to continue with the rollout.
"The pied-à-terre surcharge is about a basic principle of fairness: if you can afford a luxury second home in New York City, you can afford to pay your fair share for the schools, streets and parks that make this city work," said Matt Rauschenbach, a spokesperson for Mayor Zohran Mamdani. "Our administration is fighting every day to deliver for working New Yorkers. The ultra-wealthy are fighting in court to avoid paying their fair share. They have filed lawsuit after lawsuit to protect their privilege, and we will not back down."
"Today's decision is wrong, and we will invoke a stay of the injunction. With a stay, we will continue implementing the surcharge fairly, efficiently and in full compliance with the law, as we have since day one," Rauschenberg added. "New York is a city for the many — not a tax haven for the wealthy few."
In a statement, a spokesperson for Gov. Kathy Hochul said, "When Steve Wynn and Wilbur Ross try to cast themselves as sympathetic figures in a fight over paying their fair share on multimillion-dollar second homes, they're making the case for the pied-à-terre tax as well as anyone could. Governor Hochul believes some of the wealthiest people in the world, and the powerful interest groups fighting on their behalf, can afford to help pay for the police officers, trash pickup and snow removal that keep New York City running. The Governor was proud to sign this legislation, and the state will defend it in court."
This is a developing story. Check back soon for more information.
