Administration Watch
Judge Orders NYC to Restart Pied-à-terre Tax Notice Rollout
PN Team • 1 month ago
A Staten Island judge has ordered New York City to redo its rollout of a new tax on pricey secondary homes, a signature initiative of Mayor Zohran Mamdani's administration expected to raise about $500 million a year for the city.
State Supreme Court Justice Wayne Ozzi ruled in favor of homeowners who sued the city, finding the Department of Finance's July rollout was "arbitrary and capricious," violated recipients' due process rights, and unfairly shifted the burden onto homeowners to prove a property was their primary residence. The city had posted a list of more than 900,000 properties potentially subject to the tax and mailed notices to homeowners ahead of an Oct. 6 deadline to contest the designation. Ozzi ordered the city to pull the list from its website, cancel the mailings, and issue new individualized notices using updated records, including information on how to challenge determinations.
The city has appealed and will seek a stay to keep collecting the surcharge during litigation; plaintiffs' attorney Randy Mastro says redoing the process correctly would be faster. Staten Island Borough President Vito Fossella called the rollout an "enemies list" and urged an apology. The ruling adds to mounting legal pressure, with President Trump calling the tax a "dangerous political experiment" and Wilbur Ross and Steve Wynn separately suing the city this week.
Sentiment
- Zohran Mamdani Mamdani's signature tax initiative was ruled arbitrary and capricious, a legal setback that reflects poorly on his administration's execution.