Mamdani hits road bumps with rollout of NYC’s pied-à-terre tax

A Staten Island judge ruled New York City's rollout of its new pied-à-terre tax on high-value second homes was unlawful, finding the finance department wrongly sent notices demanding homeowners, including some full-time residents, prove they qualified for an 'exemption' rather than the city first determining who actually owed the tax. Justice Wayne Ozzi called this 'unlawful burden shifting' that risked a 50% penalty for 'negligent' paperwork and forced disclosure of tax returns.

The ruling landed alongside two fresh lawsuits challenging the tax itself: one from Steve Wynn and Wilbur Ross arguing it unconstitutionally targets nonresidents who can't vote against the officials imposing it, and a second from Manhattan co-op owners making similar discrimination claims. A spokesperson for Governor Hochul defended the tax, saying the wealthy plaintiffs are 'making the case for the pied-à-terre tax as well as anyone could.'

The city must now redo its notice process, this time assessing who actually owes the tax before mailing anything.

The full dispatch is available from the source below.