An appeals court reversed a lower court ruling Wednesday, clearing Mayor Zohran Mamdani to proceed with New York City's pied-à-terre tax. A Staten Island judge had halted the tax in September, claiming it unlawfully forced homeowners to prove residency and violated privacy by publishing details on 900,000 residential properties.
The appellate panel ruled the tax was legal and that property owners suffered no harm from the list release. "These public and published assessments contain much of the same information as the supplemental roll at the heart of this appeal," the judges wrote.
The pied-à-terre tax, proposed by Mamdani and signed into law by Gov. Kathy Hochul in May, applies to single-family homes worth $5 million or more and co-ops and condos worth at least $1 million.
"Today, an appeals court rejected an attempt by the ultra-wealthy to avoid paying their fair share and ruled in favor of the city in a lawsuit challenging the rollout of the pied-à-terre surcharge," Mamdani said.
Attorney Randy Mastro, representing homeowners, said Wednesday the appellate court "avoided addressing the merits of this case," and indicated he will continue representing his plaintiffs.
Two other lawsuits against the state remain active, arguing the pied-à-terre tax is unconstitutional because it discriminates against non-residents of New York City. Those cases are scheduled to proceed in December.