A legal challenge has temporarily halted New York City's new pied-à-terre tax, with plaintiffs alleging a "botched rollout" by Mayor Zohran Mamdani's administration. The lawsuit, filed by a trio of New Yorkers, centers on a published list of over 900,000 properties that were initially identified as potentially subject to the tax.
Rachel O’Brien, whose husband is City Councilman Frank Morano, stated she joined the lawsuit after her family's primary residence was included on the list. O’Brien noted that the property is valued at less than $5 million, a threshold below which many homes would not qualify for the tax. "As soon as I saw it I was confused and a little bit angry that the city would do this," O'Brien said. "I immediately knew it was wrong." She expressed concern that the city's approach caused unnecessary stress for middle-income homeowners.
The pied-à-terre tax is intended to target wealthy owners of secondary residences, with specific value thresholds for different property types. The suit alleges that the inclusion of properties like O'Brien's on the "supplemental tax roll" was erroneous and amounted to doxing, causing unnecessary panic. Carmine Morano, O'Brien's father-in-law, is also a plaintiff in the case.
Another group of New Yorkers, represented by Chelsea resident Simon Hedley, received mailed notices warning them of the tax unless they filed for an exemption. Hedley, who identifies as a supporter of Mayor Mamdani, joined the suit due to frustration with the city's implementation strategy. "They don’t seem to have done any due diligence around town, as far as I can tell; they’ve scatter-gunned thousands and thousands of people without really knowing who’s who," Hedley stated. He added that the burden of proof was placed on residents to demonstrate their exemption status.
Hedley's own home was on the list, but he has since successfully proven to the city that his property is not subject to the tax. He reported that the city responded quickly to his documentation, which he believes will be crucial in resolving broader issues with the tax implementation.
A Staten Island judge issued a temporary pause on the pied-à-terre tax rollout, a decision the Mamdani administration is appealing. O'Brien commented on the legal action, stating, "Because people believe the old adage ‘you can’t fight City Hall,’ but I don’t believe that you don’t stand up when something is wrong."