New York Mayor Zohran Mamdani’s plan to extract more money from owners of luxury second homes in the Big Apple has just cleared a major hurdle. A state appeals court ruled Wednesday that his administration can continue rolling out its “pied-à-terre” surcharge, overturning a Staten Island judge who ordered the city to redo the rollout, the New York Times reports. The tax targets non-New York City residents who own high-end condos, co-ops or one- or three-family homes that they use as second homes, and is expected to raise about $500 million a year.
The tax does not apply if the property is rented or occupied full-time by a close relative. The lawsuit that led to Wednesday’s ruling focused on confusion over notices sent to property owners, not the tax itself. The appeals court rejected the previous ruling, which found that those told they might be subject to the tax had suffered “irreparable harm.” Wall Street Journal reports. “All taxpayers incur time, effort and costs in determining and meeting their various tax obligations,” the appeals court said.
- Mamdani said he was “encouraged” by the ruling, calling the lawsuit “an attempt by the ultra-rich to avoid paying their fair share.” He added: “From day one, those who have the most have attempted to use every legal avenue available to protect their wealth and avoid contributing more to our city.”
- Two separate cases, including one brought by former Commerce Secretary Wilbur Ross and casino mogul Steve Wynn, challenge the constitutionality of the tax and claim it unfairly excludes nonresidents of New York state.
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