Trump says administration reviewing possible federal response to NYC luxury second-home tax
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President Trump announced he is examining whether the federal government can intervene in New York City’s newly enacted pied-à-terre surcharge, as a state judge temporarily halted parts of its rollout.
President Donald Trump said on his social-media platform that his administration is reviewing whether it has legal authority to challenge New York City’s recently adopted surcharge on luxury second homes. He argued the tax could drive high-income property owners to relocate to states such as Florida and Texas, reducing the city’s tax base.
"The NYC Pied-a-Terre Tax is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to the taxes paid by the tens of thousands of people who are fleeing the City, never to return," Trump wrote.
Trump added that the policy could have broader negative effects on the city’s reputation and hinted at possible federal action, though he did not specify which statutes or executive powers might be invoked. The White House did not immediately comment on the matter.
The mayor’s office faced a court setback on Tuesday when a New York judge ordered the city to suspend parts of the tax’s implementation after three homeowners sued over the use of a property roll that listed more than 900,000 owners. Justice Wayne Ozzi required the city to provide individualized determinations and proper notice before collecting the surcharge.
"We disagree with today’s ruling, but we are confident in both the pied-à-terre surcharge and the City’s ability to implement it fairly and effectively," Mayor Zohran Mamdani’s spokesperson Matt Rauschenbach said. He noted that the surcharge targets owners of second homes valued at $5 million or more, affecting roughly 17,000 of the city’s 8.5 million residents.
Governor Kathy Hochul’s office also did not respond to requests for comment. The legal dispute over the tax’s rollout continues as city officials defend the measure and the president considers possible federal involvement.