Lawsuit seeks to delay NYC's pied-à-terre tax, saying the rollout was botched
A group of New York City homeowners is suing to delay the implementation of the new pied-à-terre tax, saying Mayor Zohran Mamdani bungled the rollout.
In a taunting social media post, Mamdani gleefully told people he believed had second homes worth more than $5 million, as well as co-ops and condos worth more than $1 million, to expect new tax bills.
Now homeowners are striking back, saying the mayor botched the rollout, and many who live full-time in their homes were on the list.
"Mayor Mamdani wanted to make a splashy headline with the second home surcharge, but his administration violated the law in implementing it. It's been a total debacle. And the way they rolled this out violated the state law that authorized them to implement it in the first place in fundamental ways," attorney Randy Mastro said.
Mastro, who filed the suit, says the way the city did it – listing 900,000 people on a list of people who could be subject to the tax, and sending letters to 17,000 others – unfairly puts the burden of proof on homeowners to establish they are full-time city residents.
"It's both illegal and it's unfair, and it's unconscionable, because now thousands of homeowners have been put in jeopardy. Thousands of homeowners are seeking, and having to pay for, professional advice, lawyers, accountants, on how to make the application for this exemption," Mastro said.
The mayor's office insists it is doing everything possible to fix things.
"The Department of Finance has been working around the clock to answer questions, provide assistance and ensure those subject to the surcharge have the information they need. We extended the exemption application deadline to September 18th, updated our online guidance," Deputy Press Secretary Matt Rauschenbach said in a statement.
For now, the suit is seeking to delay implementation, because they say there are so many flaws in the way it was rolled out. One of the things the suit takes issue with is the list of 17,000 who got tax notices. The suit says it was overbroad, as evidenced by the fact that 6,800 people - some 40% of those on the list - have either filed for an exemption, or are in the process of filing for an exemption.