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    Home»Real Estate News»Court Order Temporarily Halts NYC’s Pied-à-terre Tax Rollout

    Court Order Temporarily Halts NYC’s Pied-à-terre Tax Rollout

    Team_WorldEstateUSABy Team_WorldEstateUSAAugust 10, 2026No Comments3 Mins Read
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    A state court docket choose issued a brief restraining order on Monday to halt New York City’s pied-á-terre tax rollout.

    The order came in response to a lawsuit filed Friday in Richmond County Supreme Courtroom by former Deputy Mayor Randy Mastro on behalf of three owners difficult the implementation of its new tax on non-primary residences with dwelling values above a sure threshold. 

    In a signed order, Choose Wayne M. Ozzi briefly ordered the town to take down the checklist of 900,000 owners printed to the Division of Finance web site and halt additional actions in amassing the tax primarily based on the printed checklist or the notices mailed to 17,000 owners during the last a number of weeks. Town can also be restricted from imposing the deadline it gave to attraction a discover of Aug. 21, or its later extension to Sept. 18. 

    The momentary restraining order will stay in impact till a listening to scheduled for Aug. 31.

    “We disagree with as we speak’s ruling, however we’re assured in each the pied-à-terre surcharge and the Metropolis’s potential to implement it pretty and successfully,” a spokesperson for the Mayor’s workplace mentioned in a press release. “This surcharge asks those that personal second properties valued at $5 million or extra to contribute their fair proportion to the town they profit from. The Legislation Division will attraction the ruling instantly which can keep the order, and the Metropolis will proceed with the pied-a-terre’s implementation.”

    The tax went into impact on July 1, focusing on single-family properties valued at $5 million or extra and condos and co-ops valued at $1 million or extra by the Division of Finance, and which might be deemed non-primary residences. 

    The lawsuit claimed that the town’s rollout of the tax didn’t observe statutory necessities for figuring out taxable properties and that it “arbitrarily and capriciously foisted onto New York Metropolis residents the burden of proving they don’t seem to be topic to the Surcharge.”

    The go well with claims that the town didn’t observe its statutory obligations when it requested owners to attraction a possible tax, pointing to the state legislation that requires the town to make use of “data accessible,” which incorporates tax return data made accessible by the State Division of Taxation and Finance. 

    As a substitute, the town posted a listing of 900,000 dwelling addresses to the DOF web site which it known as a Supplemental Roll that may very well be used to determine properties doubtlessly topic to the tax, and likewise despatched notices to a extra focused checklist of roughly 17,000 owners informing them that they could be topic to the tax. 

    Two of the plaintiffs, Rachel O’Brien and Carmine Morano, appeared on the checklist printed on the DOF’s web site. The third plaintiff, Simon Hedley, acquired a discover within the mail regardless of claiming to take care of a major residence in Chelsea. 

    Town later tried to make clear that the “overwhelming majority” of residences on the Supplemental Roll wouldn’t be topic to the tax. 

    Ben Miller contributed reporting.

    Learn extra

    Policy Pro: City rejects buyer protections for pied-à-terre tax, Council seeks rental benefit boost


    Mayor Zohran Mamdani and Department of Finance commissioner Richard Lee

    Homeowners get short reprieve after chaotic pied-à-terre tax rollout


    Mayor Zohran Mamdani

    NY Dirt: Owners have a lot of pied-à-terre questions






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