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Judge orders New York City to cancel pied-à-terre surcharge notices
A Staten Island judge said the NYC rollout was arbitrary and capricious, while leaving the state surcharge in place.
A Staten Island judge ordered New York City to cancel all pied-à-terre tax notices it mailed to owners of luxury second homes and to remove the related Supplemental Roll, saying the city’s enforcement rollout was arbitrary and capricious, according to HousingWire. The ruling targets how NYC implemented the state-imposed surcharge, not whether the surcharge itself is lawful. The judge left the surcharge on non-primary residences in place, HousingWire reported, and faulted the city only over the notices’ rollout. HousingWire said a separate Suffolk County lawsuit by wealthy Florida residents challenges the New York State law that authorized the surcharge, arguing it is an illegal property tax and discriminates against nonresidents. The plaintiffs include billionaire casino magnate Steve Wynn and former Trump administration Commerce Secretary Wilbur Ross and his wife, Hilary. HousingWire reported that the Rosses received a notice for $83,531.52 and Wynn received one, and it noted the NYC enforcement action threatened Mayor Zohran Mamdani’s plan to use the tax money to help close the city’s budget gap.