A New York judge has halted the rollout of Mayor Zohran Mamdani's pied-a-terre tax. The court issued a temporary restraining order against the city, preventing officials from moving forward with the current property list or enforcing immediate deadlines against homeowners.
The lawsuit argues that the city administration failed to conduct the required individualized assessments before identifying properties valued at over $5 million for the new surcharge. Plaintiffs claim the city improperly shifted the burden of proof onto homeowners and created a public list that disclosed the names, addresses, and property values of approximately 900,000 residents. Attorney Randy Mastro, representing the homeowners, stated the city did not do its homework before sending out notices that left many New Yorkers scrambling to prove their primary residence status.
Judge Wayne Ozzi found that the notices caused irreparable harm to residents and that the city was required to perform proper due diligence before pursuing the surcharge. While the judge acknowledged the city's intent to collect revenue for city services, he ruled that the current process was legally flawed. The court also ordered the city to take down the public list of homeowners.
The administration expressed disagreement with the ruling and intends to appeal. Mayor Mamdani defended the tax policy as a way to fund essential services, while city lawyers argued that a pause would disrupt tax collection. Both sides are scheduled to return to court later this month to argue the merits of the case further.