A New York judge has temporarily blocked Mayor Zohran Mamdani’s rollout of a new surcharge targeting luxury second homes after homeowners challenged how the city identified properties potentially subject to the tax.
According to Fox News, Judge Wayne Ozzi issued a temporary restraining order Monday that prevents the city from relying on a disputed property list or previously mailed notices to enforce the surcharge.
The order also requires the administration to halt further action until it follows the individualized review procedures required under state tax law.
The legal fight centers on a surcharge aimed at second homes valued at more than $5 million. Three homeowners sued the city, arguing that officials incorrectly flagged primary residences and improperly placed the burden on homeowners to prove they should be exempt.
Attorney Randy Mastro, who represents the homeowners, accused the administration of rushing the rollout without first determining which properties actually qualified.
"The city screwed this up… got it wrong… stop the train and make them do it over," Mastro told the court.
The dispute intensified after the city published a supplemental property roll containing the names, addresses and property values of more than 900,000 homeowners.
Mastro argued that the list created unnecessary confusion and exposed private information about property owners. He said residents received notices suggesting they could owe the surcharge even when their homes were their primary residences.
One plaintiff, Simon Hedley, eventually received an exemption after submitting tax information. Mastro argued that the case showed the city could have made those determinations before sending notices to homeowners.
City attorneys defended the process and warned that stopping it could interfere with taxpayers seeking exemptions.
Attorney Steven Banks argued that keeping the process in place would preserve the status quo and allow residents to meet existing deadlines.
Ozzi rejected that argument for now, finding that the notices had created irreparable harm and that the city was responsible for making the initial determinations.
He also said the plaintiffs were likely to prevail on their claims concerning the rollout, while stressing that the broader case has not yet been resolved.
The Mamdani administration quickly said it would appeal.
"We disagree with today’s ruling, but we are confident in both the pied-a-terre surcharge and the City’s ability to implement it fairly and effectively," mayoral spokesperson Matt Rauschenbach said.
Mamdani has defended the surcharge as a way to make owners of expensive second homes contribute more toward city services. He said roughly 17,000 homeowners are potentially affected.
The judge’s order sets the next major legal deadlines for later this month, with oral arguments scheduled for Aug. 31.