Appeals Court: NYC Can Roll Out Pied-a-terre Tax … for Now 

The city of New York can continue to roll out its pied-a-terre tax on wealthy New Yorkers who own second homes, a state appeals court ruled.

That’s at least until those suing over the tax face off with Mayor Zohran Mamdani’s Law Department in court later this month, amNY reported.

The decision comes after the city appealed Staten Island Supreme Court Judge Wayne Ozzi’s temporary block of the second home tax early last week.

Ozzi’s ruling was in response to a lawsuit filed by a group of homeowners alleging the way the city began notifying homeowners of the tax created “mass confusion,” amNY reported.

The homeowners who filed the suit are represented by Randy Mastro, the former First Deputy Mayor to Eric Adams, who has gained a reputation for suing the Mamdani administration, amNY said.

‘Unfair Burden’

The lawsuit was filed by family members of Republican Council Member Frank Morano, and itargues that the city placed an unfair burden on the 17,000 property owners who received mailed notices telling them they may owe the new tax by leaving it up to them to prove whether they were eligible for an exemption, so they should have more time to challenge whether they are responsible for paying the new tax.

The suit also argues that the city should not be allowed to keep a list of 900,000 properties and their owners up on its websites and social media, a publication the city has said is essentially a state-mandated tax roll.

The Appellate Division, Second Department, ruled late last that the city’s appeal of Ozzi’s order is stayed until the two parties meet in Ozzi’s courtroom Aug. 31 for a hearing over whether the tax rollout should be allowed to continue as the suit over it plays out in an order signed by Associate Justice Philip Hom.

Attorney Confident in Suit

Mastro, who filed court papers arguing that Ozzi’s order shouldn’t be stayed by the city appealing it, said he disagreed with the city appealing in a way that circumvented Ozzi’s order and said he was “confident” his clients will win when they appear in court later this month.

“It is a shame that the City can’t own up to its own mistakes and admit that it has badly botched the rollout of this surcharge,” Mastro said in a statement. “Instead, the administration is doubling down, going to court to ensure that it can continue harassing and threatening New York City homeowners who clearly are permanent residents – something the City would know if it would only do its homework.”

Those who believe they received a letter from the city in error notifying them they have to pay the tax have until Sept. 18 to tell the city they think they shouldn’t have to pay.

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