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[POLITICS] · United States · 35 sources

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New York City ordered to restart pied-à-terre tax rollout

A Staten Island judge, Wayne Ozzi, has ordered New York City to restart the implementation of its new pied-à-terre tax after ruling that the rollout was mishandled. The decision follows a lawsuit from homeowners who argued the city’s method unfairly shifted the burden of proof to residents to demonstrate their properties were primary residences rather than secondary homes.

Judge Ozzi ruled that the city’s notifications were “arbitrary and capricious” and violated due process rights. He ordered the city to cancel approximately 17,000 previously mailed notices and remove a public list from the Department of Finance website that included the names and addresses of roughly 900,000 properties. The judge noted that the city must instead conduct individualized initial determinations using all available fiscal information before issuing new notices.

The tax, a key part of Mayor Zohran Mamdani’s budget to close a city deficit, targets one-to-three family homes valued at $5 million or more and certain co-ops or condos valued at $1 million or more. While the ruling affects the implementation process, it does not strike down the legality of the tax itself.

The Mamdani administration has appealed the decision and invoked an automatic stay, allowing the city to continue its current tax collection trajectory while the legal battle continues. City officials defended the tax as a necessary measure to ensure the wealthy pay their fair share for public services.

Entities

Department of Finance · Kathy Hochul · New York City · New York City Department of Finance · Randy Mastro · Real Estate Board of New York · Wayne M. Ozzi · Wayne Ozzi · Zohran Mamdani

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