Key facts
- A Staten Island judge ordered New York City Mayor Zohran Mamdani's administration to redo the rollout of the pied-à-terre tax.
- The ruling by Judge Wayne Ozzi sides with New York City homeowners challenging the tax's implementation.
- The pied-à-terre tax applies to second homes in the city worth more than $5 million.
- The lawsuit alleged the administration did not perform sufficient due diligence before sending letters to 17,000 homeowners.
- The judge ruled that the city must mail new notices "in compliance with the intent of the law."
- The ruling eliminated the city's exemption process, which the judge called "unlawful burden shifting."
A Staten Island judge has ordered New York City Mayor Zohran Mamdani's administration to redo the rollout of the city's pied-à-terre tax, a surcharge on high-value second homes. The decision by Judge Wayne Ozzi sides with a group of homeowners who sued, alleging the city did not conduct sufficient due diligence before sending out notices to approximately 17,000 property owners and releasing a public list of about 900,000 potentially affected homes.
Ozzi's order mandates that the city mail new notices that comply with the "intent of the law," effectively voiding the notices already sent. The judge also struck down the city's exemption process, labeling it an "unlawful burden shifting." The pied-à-terre tax applies to non-primary residences valued at $5 million or more, and was enacted as part of the state budget to address the city's budget gap.
Following the ruling, the city filed a motion for permission to appeal, which will temporarily halt the order in lower courts. A spokesperson for Mayor Mamdani stated that the city disagrees with the ruling but is confident in the tax's fairness and effectiveness and will continue with its implementation. The next court hearing is scheduled for August 31.