Homeowners Sue New York City Over Pied-à-Terre Tax Rollout

Three New York City homeowners filed a lawsuit in Staten Island Supreme Court on Friday to delay the rollout of a new pied-à-terre tax. The plaintiffs argue that the New York City Department of Finance mishandled the implementation by publishing an assessment roll of nearly 1 million properties and mailing 17,000 notices to homeowners, including many who own primary residences.

The lawsuit claims the city arbitrarily shifted the burden of proof to residents to prove they are not subject to the surcharge instead of conducting diligent assessments first. While the suit does not challenge the legality of the tax—which targets non-primary residences worth $1 million or more for apartments and $5 million or more for single-family homes—it seeks to block the September 18 response deadline and force the removal of the public assessment roll.

Mayor Zohran Mamdani defended the rollout, stating that only those who receive official letters must pay. However, former Department of Finance Commissioner Martha Stark provided an expert affirmation claiming the city's notices were strikingly over-inclusive.