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New York judge orders city to scrap Mamdani’s rollout of tax on second homes
The judge said the city improperly burdened homeowners and ordered officials to cancel 17,000 notices and restart the vetting process.
On Tuesday, New York State Supreme Court Justice Wayne Ozzi ordered the Mamdani administration to halt its pied-a-terre tax rollout, forcing the city to rescind thousands of notices sent to homeowners after identifying widespread vetting errors.
The Department of Finance erroneously mailed 17,000 letters to homeowners, later determining that nearly 6,000 properties—or 35%—were actually primary residences exempt from the surcharge after failing to check personal income tax filings.
Representing homeowners, Randy Mastro successfully sued to challenge the implementation, prompting Justice Ozzi to order the city to examine "any and all resources and information available" before classifying properties as second homes.
Signed by Gov. Kathy Hochul in May at Mayor Zohran Mamdani's request, the tax aims to address a $5 billion budget gap by generating $500 million annually from properties valued at $5 million or more.
City Corporation Counsel Steve Banks has not indicated whether the administration will appeal, leaving uncertain the city's path forward as it must remove a supplemental roll of more than 900,000 properties and restart vetting entirely.