NEW YORK(Diya TV) — A Staten Island judge has temporarily blocked New York City Mayor Zohran Mamdani’s pied-à-terre tax, putting a pause on one of his key campaign promises to raise more money from wealthy property owners.
The ruling came Monday as a group of New York City homeowners challenged the way the city rolled out the new tax. The homeowners say the city wrongly identified their primary homes as possible targets for the surcharge.
Soon after the ruling, New York City filed a motion seeking permission to appeal. That move will keep the legal process active while the case moves through the lower courts.
“The City will continue with the pied-à-terre’s implementation,” Matt Rauschenbach, a spokesperson for Mamdani, said in a statement.
The judge’s temporary restraining order stops the city from moving ahead with parts of the tax rollout. It also requires the city to remove the public tax roll and prevents officials from sending additional notices while the order remains in effect.
The court scheduled the next hearing for Aug. 31.
The judge said the tax notices caused irreparable harm to affected homeowners. The notices did not clearly explain why the city had flagged the properties. They also warned homeowners that they could face the surcharge if they did not seek an exemption.
Mamdani defended the city’s position before the ruling. At a Monday morning news conference, he said his administration would “vigorously defend” the policy in court.
Rauschenbach also said the city disagreed with the decision. However, he expressed confidence in the tax and the city’s ability to apply it fairly.
The pied-à-terre tax targets certain high-value homes that owners do not use as their primary residences. The surcharge applies to non-primary residences in New York City worth at least $5 million. It also covers condominiums and co-ops valued at $1 million or more under the new rules.
New York lawmakers included the tax in the state budget. Gov. Kathy Hochul signed the measure into law in May. Hochul and Mamdani had announced the proposal together in April.
Mamdani took office in January after campaigning as a democratic socialist. He promised to make New York City more affordable and improve everyday life for residents.
Since taking office, his administration has announced several initiatives. Those efforts include an expansion of 2-K, a free child care program for 2-year-olds. The administration also announced a plan that it said could save bus riders up to six minutes. In addition, Mamdani delivered a rent freeze for tenants in rent-stabilized apartments.
Three homeowners — Simon Hedley, Rachel O’Brien and Carmine Morano — filed the case Friday in the state Supreme Court in Richmond County. They argue that the city incorrectly flagged their homes as potentially subject to the pied-à-terre tax.
The homeowners do not challenge the tax itself. Instead, they question the city’s process for identifying properties and notifying owners.
The city released a tax roll containing names, addresses, and property values for more than 900,000 residential properties. The list included properties that did not face the surcharge. The city also sent letters to about 17,000 property owners who might owe the tax.
Randy Mastro, the homeowners’ attorney, welcomed the judge’s decision. He said the ruling protected homeowners who should not have faced the tax process.
Hedley, one of the plaintiffs, said he supports Mamdani and his plan to tax wealthy residents. However, he said the notice he received caused concern because his Manhattan home serves as his primary and only residence.
After receiving the letter in July, Hedley sought legal help. He then filed for an exemption by submitting a tax return. By Monday morning, the city had confirmed his exemption.
Hedley said the city could have avoided the confusion by checking existing tax records before sending notices. He hopes officials will now review the process more carefully.
