A Staten Island Supreme Court judge temporarily blocked Mayor Zohran Mamdani’s controversial pied-à-terre tax rollout late Monday, pausing a luxury second-home levy that aims to generate roughly $500 million in municipal revenue. Justice Wayne Ozzi issued a temporary restraining order following a lawsuit filed Friday by local property owners, halting Department of Finance notices sent to 17,000 alleged double-home owners.
Court Ruling Halts Second-Home Tax Notices
According to the ruling by Justice Wayne Ozzi, the city’s method of notifying 17,000 suspected double-home owners did not constitute proper notice under tax law. The court found that the administration unlawfully shifted the burden of proof onto property owners, requiring them to establish that they should be exempt rather than requiring the city to make an initial determination. The temporary restraining order freezes implementation of the tax until at least an Aug. 31 court hearing, as reported by PoliticsNY.
The lawsuit was filed by a group of homeowners represented by attorney Randy Mastro, who previously served as a first deputy mayor under Eric Adams. Plaintiffs in the suit include Rachel O’Brien and Carmine Morano, the wife and father of Republican City Council Member Frank Morano. The legal challenge does not contest the underlying legality of the tax itself, but specifically targets the rollout process and the city’s public database.
Controversial Property Database and Tax Scope
Justice Ozzi also criticized the administration’s public release of an online database containing records for more than 900,000 residential properties and co-op units. The court ruled that no existing law permitted or required the city to publish such a list of names, addresses, and property values through an irregular, mid-year publication.
Approved by state lawmakers and Gov. Kathy Hochul earlier in the spring, the pied-à-terre tax targets non-primary, unoccupied residences. The levy applies to single-family homes, multi-family properties, co-ops, and condominiums valued at specific luxury thresholds. According to the New York Post, the tax covers one- to three-family homes worth at least $5 million, alongside co-ops and condominiums valued at $1 million or more.
Administration Response and Upcoming Legal Battle
Mayor Mamdani’s administration disagreed with the court’s decision and announced plans for an immediate appeal. Matt Rauschenbach, a spokesperson for the mayor, stated that the city remains confident in both the tax surcharge and its implementation strategy.
“This surcharge asks those who own second homes valued at $5 million or more to contribute their fair share to the city they benefit from,” Rauschenbach said, adding that the city’s Law Department would appeal the ruling immediately to keep implementation on schedule. Meanwhile, Justice Ozzi scheduled an Aug. 31 hearing where city attorneys will argue why the temporary restraining order should be lifted.
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