Key facts
- Homeowners are suing New York City and Mayor Zohran Mamdani over the pied-à-terre tax.
- The lawsuit claims the tax rollout incorrectly included primary residences.
- The city extended the deadline for owners to prove their primary residence status.
- Plaintiffs seek to void the supplemental market-value roll and mailed notices.
- Randy Mastro, who is representing the homeowners, is also involved in a separate rent freeze lawsuit.
New York City homeowners have filed a lawsuit challenging the implementation of the city's pied-à-terre tax, which targets high-value second homes. The suit, filed Friday, does not dispute the tax itself but argues that its rollout has unfairly swept in thousands of primary residences that should be exempt.
Plaintiffs contend that the city has placed the burden on homeowners to prove they are not subject to the surcharge, a process they describe as arbitrary and capricious. The lawsuit states that the Department of Finance mailed notices to approximately 17,000 homeowners indicating their properties "may be subject" to the tax, requiring them to apply for an exemption. Homeowners and brokers have expressed frustration with the unclear requirements and the perceived lack of transparency.
The city had previously extended the deadline for owners to submit proof of residency to mid-September, citing summer travel. The lawsuit also points to a supplemental market-value roll posted in July, which listed over 900,000 properties and was initially described as being tied to the surcharge, though officials later clarified it covered nearly all eligible property types.
Randy Mastro, the attorney representing the homeowners in this tax case, is also co-counsel in a separate lawsuit against the city's Rent Guidelines Board for freezing rents on approximately 1 million stabilized apartments. This marks the second recent legal challenge against the Mamdani administration's actions.