Key facts
- A New York State judge issued a temporary restraining order.
- The order blocks New York City's pied-à-terre tax.
- The tax targets non-primary residences valued over $5 million.
- Homeowners filed a lawsuit against the tax.
- Plaintiffs allege the tax incorrectly includes primary residences.
A New York State judge has issued a temporary restraining order that temporarily blocks New York City's controversial pied-à-terre tax. The tax, which targets owners of non-primary residences valued at $5 million or more, is now on hold due to a lawsuit filed by homeowners. These homeowners allege that the tax legislation incorrectly includes primary residences in its scope, leading to the judge's intervention. The temporary restraining order means the city cannot collect the tax while the legal challenge is being heard. This development halts the implementation of a tax that was intended to generate revenue for public transportation improvements.