NYC Pied-à-Terre Tax Blocked by Judge, Mayor Appeals
Judge Wayne Ozzi from Staten Island has issued a temporary injunction against New York City's pied-à-terre tax aimed at high-value second residences. This decision came in response to a lawsuit filed by homeowners Simon Hedley, Rachel O'Brien, and Carmine Morano, who claimed deficiencies in the city’s taxpayer identification system. The ruling mandates that the Department of Finance must take down a tax roll encompassing 960,000 properties from public access and has barred the enforcement of notices sent to 17,000 homeowners. Mayor Zohran Mamdani's administration has initiated an appeal, which automatically stays the enforcement. A subsequent hearing is scheduled for August 31. The tax, which targets second homes valued at $5 million or more, was enacted in May and took effect on July 1.
Key facts
- Judge Wayne Ozzi issued a temporary restraining order blocking the pied-à-terre tax.
- The tax applies to second homes worth $5 million or more and co-ops/condos at $1 million threshold.
- The city's Department of Finance must remove a tax roll covering 960,000 properties from public view.
- Warning notices had been sent to approximately 17,000 homeowners.
- The city filed a motion for permission to appeal, triggering an automatic stay.
- Next hearing is scheduled for August 31.
- Lawsuit filed by Simon Hedley, Rachel O'Brien, and Carmine Morano.
- Mayor Zohran Mamdani vowed to vigorously defend the tax.
- The tax was signed into law in May and became active on July 1.
Entities
Institutions
- New York City Department of Finance
- Wall Street Journal
- CNN
- State Supreme Court, Richmond County
Locations
- New York City
- Staten Island
- Manhattan
- Richmond County
Sources
- Quartz —