3 weeks ago
NYC's pied-à-terre tax temporarily blocked by court ruling
The mayor of New York City wants to charge extra money to very rich people who own fancy second homes in the city.
The extra charge is called a 'pied-à-terre tax,' and it would help the city pay for important things without cutting services.
The city sent letters to about 17,000 homeowners saying they might have to pay.
But some people said, 'Wait — this is my main home, not a second home!'
They were confused and upset.
Three of them went to court to complain.
A judge listened and said the tax has to be put on pause for now.
The judge also said the city must take down its big list of homeowners from the internet.
The city disagrees and says it will keep working to make the tax happen.
Everyone will go back to court on August 31 to talk about it again.
A Staten Island Supreme Court judge temporarily blocked New York City's pied-à-terre tax on high-value second homes until at least August 31.
The surcharge, passed by New York State lawmakers in May 2026, targets non-primary residences worth $5 million or more and condos or co-ops worth $1 million or more.
City and state officials expected the tax to raise $500 million from an estimated 13,000 homes to close a 'historic budget gap.'
Three homeowners — Simon Hedley, Rachel O'Brien, and Carmine Morano — sued, arguing the published tax roll wrongly listed people whose properties are primary residences.
The judge ordered the city to take down the online tax roll of more than 900,000 homeowners, and the city filed a motion for permission to appeal.
- Who
- New York City Mayor Zohran Mamdani, whose administration introduced the pied-à-terre tax; homeowners Simon Hedley, Rachel O'Brien, and Carmine Morano, who sued; and Staten Island Supreme Court Justice Wayne Ozzi, who blocked the tax.
- What
- A court temporarily blocked New York City's pied-à-terre surcharge on high-value second homes and ordered the city to remove the published tax roll.
- Where
- New York City; the ruling was issued in state Supreme Court, Richmond County (Staten Island).
- When
- The ruling came on Monday (US time) after the lawsuit was filed Friday; state lawmakers had passed the tax in May 2026, and the next hearing is slated for August 31.
- Why
- Homeowners argued the tax roll wrongly included people whose properties are primary residences, causing mass confusion.
Supporters of the pied-à-terre tax
Homeowners challenging the tax
Fair share for second-home owners
Supporters of the pied-à-terre tax
The surcharge asks those who own second homes valued at $5 million or more to contribute their fair share to the city they benefit from, helping close a historic budget gap without slashing essential services or offloading costs onto working New Yorkers.
Homeowners challenging the tax
The rollout wrongly targets homeowners whose properties are primary residences and causes mass confusion, subjecting hundreds of thousands of NYC homeowners to a process they never should have been part of.
Publication of the tax roll
Supporters of the pied-à-terre tax
The posted tax roll is a reflection of all properties across New York City, not a list of the specific properties the pied-à-terre tax will be levied upon.
Homeowners challenging the tax
Publishing a database of more than 900,000 homeowners exposes their details and wrongly includes residents who may not actually be subject to the surcharge.
Key facts
- Tax
- Pied-à-terre surcharge on high-value non-primary residences
- Expected revenue
- $500 million
- Estimated affected homes
- 13,000
- Tax thresholds
- $5 million+ non-primary residences; $1 million+ condos/co-ops
- Tax roll size
- Over 900,000 homeowners listed
- Notices sent
- Nearly 17,000
- Exemption deadlines
- August 21 (cooperatives: August 24)
- Next hearing
- August 31
Quotes
Matt Rauschenbach
Spokesperson for Mayor Zohran Mamdani
“We are very gratified by the judge’s decision, which has vindicated the rights of hundreds of thousands of New York City homeowners who were subjected to a process they never should have been a part of in the first place.”
financialexpress.com
“The City will continue with the pied‑à‑terre’s implementation.”
financialexpress.com
Sources
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