A Staten Island judge on Tuesday ordered the Mamdani administration to cancel thousands of notices sent to property owners warning them that they faced a second-home surcharge and to re-start the vetting process that erroneously listed the primary residences of thousands of New Yorkers as possibly subject to the tax.
After sending out the threatening letters to 17,000 homeowners, the Department of Finance subsequently determined that nearly 6,000 properties — or 35% — were actually primary residences that are not subject to the hefty tax. The notices triggered an eruption of outrage.
Randy Mastro, a former deputy mayor to both Eric Adams and Rudy Giuliani, sued on behalf of a handful of homeowners who got the notices and insisted their properties were not second homes.
“We’re gratified that the court has recognized we were right all along,” Mastro said. “The fact is that this administration failed to follow state law when it burdened New York City homeowners with proving they live in their own homes or be on the hook for paying a new surcharge.”
The city admitted that it did not check property owners’ personal income tax filings before mailing the pied-à-terre warning letters; after they did so thousands of properties that got the notices were determined to be primary residences.
The pied-à-terre tax was passed by the legislature and signed by Gov. Kathy Hochul in May at the request of Mayor Zohran Mamdani to help plug a $5 billion budget gap. His administration has said the tax would raise $500 million annually.
MORE: NYC Homeowners Escape ‘Scary’ Pied-à-Terre Tax Threat
The ruling by state Supreme Court Justice Wayne Ozzi ordered the city to first examine “any and all resources and information available” before determining that the property is subject to the tax, and provide all records to support the contention that property is a second home.
Targeted properties are any one, two- and three-family homes with a market value of $5 million or more and co-ops and condos with a market value of $1 million or more.
City Corporation Counsel Steve Banks did not respond immediately as to whether the city intends to file an appeal.
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