Staten Island Judge Halts New York City's Pied-à-Terre Tax Rollout
A judge ordered the removal of a public list of homeowners and cancelled mailed notices related to New York City's proposed surcharge on high-value secondary residences, citing procedural errors.
A Staten Island judge ruled that New York City must withdraw a publicly posted list of over 900,000 homeowners and cancel previously mailed notices concerning the proposed pied-à-terre surcharge. The tax, introduced in Mayor Zohran Mamdani’s 2027 budget, would add a surcharge on non-primary residences valued above $5 million and on co-ops valued at $1 million or more.
Plaintiffs did not dispute the tax’s legality but argued that the city incorrectly identified their primary homes as potentially subject to the surcharge. Judge Wayne M. Ozzi ordered that the roll be replaced with a list reflecting only properties actually liable for the surcharge and that any new notices follow a rule requiring an individualized determination based on all available information.
Attorney Randy Mastro, representing the plaintiffs, said the ruling affirmed that the administration had not complied with state law in requiring homeowners to prove primary residence status. A spokesperson for the mayor’s office called the decision “wrong” and defended the surcharge as a fairness measure for city services. The city indicated it will seek a stay of the ruling.
Separately, a group of Suffolk County homeowners and a cooperative filed a lawsuit challenging the tax’s constitutionality, alleging discrimination against non-residents, retroactive application, and undue burdens on owners. The suit also criticized the public roll and mailed notices for privacy concerns and confusion.