New York City's controversial pied-à-terre tax is back in effect following a surprise ruling from an appeals court on Thursday, which temporarily lifted a lower court's restraining order. Associate Justice Philip Hom of the Brooklyn Appellate Division issued the order, allowing the city to proceed with the tax's rollout while the full appeals panel reviews the case.
The tax, intended for owners of high-value secondary residences, had its implementation paused earlier in the week by a lower court. Opponents, represented by former first deputy mayor Randy Mastro, are suing the city over the tax's rollout. Mastro criticized the city administration's efforts to continue implementing the tax as "an astonishing display of chutzpah," arguing that the city is exacerbating its "illegal conduct" to avoid a brief pause.
Mastro further stated that the city is going to "extraordinary lengths to avoid a three-week pause in their harassment campaign of New York City homeowners." He asserted that the tax is being pushed despite having a deadline for invoicing on November 15, 2026, and collection not due until January of the following year.
This development means the city can continue with the tax's operational aspects while the legal challenge progresses through the appellate court. The ultimate outcome of the case remains pending as the court prepares to hear arguments from both sides.