A Staten Island judge has temporarily blocked New York City’s rollout of Mayor Zohran Mamdani’s new pied-à-terre tax, dealing a setback to the administration’s effort to raise revenue from high-value second homes.
New York Supreme Court Justice Wayne Ozzi issued a temporary restraining order Monday, August 10th, halting the city from enforcing notices sent to approximately 17,000 property owners who were warned they could be subject to the new surcharge.
The judge also ordered the city to remove its publicly available property tax roll listing roughly 960,000 properties while the case moves forward.
The legal challenge was brought by three homeowners, represented by Randy Mastro, who argued that the city mishandled the tax’s implementation and improperly placed the burden on residents to prove their homes are primary residences. Some homeowners said they were mistakenly identified despite living in the properties full time.
The tax, which took effect July 1st, targets certain non-primary residences, including luxury homes valued at $5 million or more and qualifying condominiums and co-ops valued at $1 million or more. The city expects the surcharge to generate significant new revenue.
Mamdani’s administration has defended the tax and said it intends to appeal the ruling. The next court hearing is scheduled for August 31st.
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