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NYC blocks rollout of pied-à-terre surcharge on homes over $5 million
A Staten Island judge barred the city from advancing the tax through an online list of nearly 1 million affected properties, with the stay running until an Aug. 31 appeal hearing.
Commercial Observer reports that a Staten Island Supreme Court Justice, Wayne Ozzi, temporarily blocked New York City Mayor Zohran Mamdani’s pied-à-terre tax rollout, ordering the removal of nearly 1 million properties the city had posted online as affected by the surcharge.
The decision came after a lawsuit filed by homeowners last week, and the city appealed Monday evening, which automatically triggered a stay until an appeal is heard on Aug. 31.
Commercial Observer also notes that a source familiar with New York tax law cautioned the surcharge is still likely to take effect even if delayed, advising homeowners who received original July surcharge notices to prepare their paperwork.
The pied-à-terre tax was approved by the New York State Legislature in May, and is projected to raise $500 million in revenue for the city, according to an analysis by New York City Comptroller Mark Levine. A Mamdani spokesperson said the city disagrees with the ruling but is confident the surcharge can be implemented fairly and effectively.