NY Appeals Court Clears Mamdani Luxury Second-Home Tax

A unanimous New York appellate court overturned a lower-court order requiring the city to restart the rollout of Mayor Zohran Mamdani’s pied-à-terre surcharge, ruling that the homeowners who sued lacked standing because they had not shown concrete harm. The court said receiving a notice or appearing on a property list was not sufficient injury, and it did not decide whether the rollout improperly placed the burden on homeowners to prove residency. The ruling allows the city to continue implementing the annual surcharge on second homes valued above $5 million whose owners do not primarily live in New York City. Supporters estimate it could raise about $500 million annually for city services and help address the budget gap. Mamdani welcomed the decision, opponents criticized the rollout, and other legal challenges remain pending.