Restraining order on NYC's new pied-à-terre tax temporarily lifted, court rules

A restraining order on New York City's new pied-à-terre tax has been temporarily lifted.

The tax would require anyone who owns a second home in the city valued over $5 million to pay an annual surcharge.

On Monday, a judge on Staten Island temporarily blocked the city from implementing the tax due to a lawsuit brought by a group of homeowners who allege the city bungled the rollout of the tax.

A Brooklyn Appellate court ruled Thursday that the city can continue the rollout until that case goes back to court.

Those who are suing allege the city included people who live in their homes full-time on a public list of 900,000 people who could be subject to the tax. They also claim thousands of others who live in their homes full-time received letters warning they may have to pay.

The mayor's office has not yet responded to Thursday's ruling.

The next hearing in the case is set for Aug. 31.