A Staten Island judge has ordered New York City officials to restart their rollout process for the pied-à-terre tax, finding that the city's administration of the surcharge was flawed and unfairly burdened homeowners.
The judge ruled that the city "unfairly shifted the burden to thousands of homeowners to prove their basic residency." According to the decision, all previous mail notices sent to property owners are now canceled, and new notices must be mailed that specifically identify which properties would be subject to the tax.
Some 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. Others reported receiving mailed notices at their primary residence indicating they may be subject to the tax.
Randy Mastro, an attorney representing homeowners who sued the city, said the Mamdani administration failed to complete required statutory work before attempting to impose the tax. "Sometimes city administrations screw up. This one's a whopper. And that's what the judge has now found," Mastro said.
The ruling does not invalidate the pied-à-terre tax itself, which is already state law. The lawsuit did not challenge the tax's legality, though other lawsuits are doing so. Instead, the decision requires the city to begin again in determining which property owners are subject to the surcharge.
The pied-à-terre tax is a surcharge on secondary homes in the city, often luxury apartments that are not used as primary residences. A spokesman for Mayor Zohran Mamdani said the city will appeal the ruling.