A Staten Island judge temporarily hit the brakes on the Mamdani Administration’s controversial rollout of the pied-à-terre surcharge on expensive second homes in a Monday order.
Staten Island Supreme Court Justice Wayne Ozzi, in a ruling on a lawsuit challenging the city’s rollout of the tax on second homes, ordered the city to take down a property tax roll of nearly 1 million properties it had posted online. The order also nullified any deadlines for the tax. But shortly after the order was filed, the city filed an appeal of the ruling, effectively keeping the order from taking effect.
The lawsuit, filed last week, takes issue with the city’s publishing of the massive tax roll — some of which, the Department of Finance noted, could be subject to the tax. The trio of homeowners suing the city claimed the city’s publication of the master list of over 950,000 properties has created confusion and “invited public scrutiny and ridicule” of the wealthy homeowners.
After that master list was published, around 17,000 homeowners received letters warning them that the city had identified them as subject to the tax and needed to contest the finding if they believed they were city residents not subject to the surcharge. The suit claimed that move was problematic because it “arbitrarily and capriciously foisted” onto local homeowners the burden of proving they’re full-time residents who aren’t subject to the surcharge.
One of the three plaintiffs has received the letters warning them they’d be taxed, per the lawsuit.
The surcharge, which was passed by the state but is administered by the city, slaps an extra tax on 1-, 2- and 3-family homes assessed at $5 million or more and co-ops and condos valued at $1 million or more.
“We disagree with today’s ruling, but we are confident in both the pied-à-terre surcharge and the City’s ability to implement it fairly and effectively,” Matt Rauschenbach, a spokesperson for the mayor, said in a statement.
Rauschenbach said the city’s Law Department will appeal the ruling “immediately.”
Earlier Monday morning, Mayor Mamdani attacked the plaintiffs’ attorney and defended the tax’s rollout, saying the expected $500 million in annual revenue will help fund essential city infrastructure like streets and schools.
“You know, there are few things more certain in New York City than death, taxes and Randy Mastro filing a lawsuit against this administration,” Mamdani said of the attorney in the action. Mastro was First Deputy Mayor under former Mayor Eric Adams.
“So we look forward to vigorously defend our city’s position in court as we have done so with the previous lawsuits that he has filed, and I’m sure with the lawsuits that he will continue to file in the months and years to come,” the mayor said.
