A New York judge has temporarily halted the implementation of the city's new "pied-à-terre" tax, a surcharge on luxury second homes. Staten Island Supreme Court Justice Wayne Ozzi issued a temporary restraining order on Monday, pausing the tax rollout after a group of New York homeowners filed a lawsuit against the city.
The homeowners argued that the city "botched the rollout and unfairly burdened them," according to the New York Post. Justice Ozzi's order nullifies existing deadlines for the tax and prevents City Hall and the Department of Finance from taking further action based on the newly published tax roll. The ruling also blocks the city from acting on the 17,000 notices sent to homeowners who might be subject to the tax, unless they had already requested an exemption.
The tax, championed by Mayor Zohran Mamdani, targets owners of high-value second residences in New York City. The supplemental tax roll identified more than 950,000 homeowners potentially affected by the surcharge, with 17,000 receiving notices that they could face significant tax bills if they did not seek an exemption. The legal challenge and the subsequent restraining order introduce an immediate pause to these efforts.