Mamdani doubles down on pied-à-terre tax following legal blow

Following a judge’s order on Tuesday to restart the rollout of the pied-à-terre tax in New York City, Mayor Zohran Mamdani reaffirmed his commitment to the policy. 

The tax, which applies to high-value second homes in the city, was passed in the state budget earlier this year. But rollout of the policy has garnered significant pushback and several legal challenges – including two new lawsuits filed this week that argue the tax is unconstitutional. But the biggest blow this week came in an earlier lawsuit in which homeowners challenged how the Mamdani administration has been rolling out the tax, arguing it was rushed and that the city Department of Finance didn’t sufficiently determine who owes the tax before implementing the law. It also took issue with the city publishing a list of properties and owners that could be subject to the tax. 

Yesterday, Staten Island state Supreme Court Judge Wayne Ozzi sided with these homeowners. The Mamdani administration said soon after it will appeal. The next step is in the hands of the appellate court: if it sides with the judge, the city will have to start the endeavor from scratch.  

At an unrelated housing press conference on Wednesday, Mamdani stood in firm disagreement with the claims in the new lawsuits that the tax is unconstitutional. “We’re standing here talking about a legacy of disinvestment, and I say this to call attention to what those lawsuits are about,” he said.

Mamdani spoke of lower-income New York City residents, and the stark contrast between them and luxury owners subject to the tax. “I see people who have poured themselves into this city, but they often haven’t received that love back. And raising $500 million dollars by taxing those who can afford a second home worth more than $5 million dollars, to then put that money back into every New Yorker’s life, I think that’s not only the right thing to do, it’s a thing that we have to do.”

New York Attorney General Letitia James also addressed the new lawsuits – naming the state as a defendant – in an interview with City & State Tuesday. “We are working with (New York City’s corporation) counsel and we are joining forces, and we will appeal,” she said.