Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Mamdani must redo his pied-à-terre tax rollout, NY judge orders
By
David Brand
Published Sep 29, 2026
Modified Sep 29, 2026
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Anna Connors - Pool/Getty Images
By
David Brand
Published Sep 29, 2026
Modified Sep 29, 2026
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Mayor Zohran Mamdani’s attempt to levy a new tax on luxury second homes faced new legal headwinds Tuesday after a Staten Island judge invalidated notices that have already been mailed to property owners and a billionaire casino owner teamed up with a former Trump cabinet secretary on a second pied-à-terre lawsuit.
In a previous lawsuit filed in August, Judge Wayne Ozzi ordered the city to take down a list of more than 900,000 properties potentially subject to the new tax and issue new notices to owners of second homes who may be required to pay the surcharge.
The ruling came shortly after Stephen Wynn, founder of Wynn Resorts, and Wilbur Ross, former U.S. commerce secretary, opened their own legal front against the new tax, which applies to homes valued at $5 million or higher, or condos and co-ops worth at least $1 million. The pair, along with Ross’ wife, accused the state of discriminating against wealthy out-of-towners through a new “property tax that falls exclusively on nonresidents of New York City.”
In July, the city issued notices to roughly 17,000 addresses, informing the owners that they may be subject to the new surcharge. The Department of Finance had also published a list of nearly 1 million properties it considered in assessing the new tax.
Property owners in the initial lawsuit — including the wife and father of Councilmember Frank Morano, a Staten Island Republican — accused the Mamdani administration of sowing “mass confusion” by publishing the list of publicly available records.
Their attorney Randy Mastro, a former deputy mayor under Mamdani’s predecessor, Mayor Eric Adams, hailed the ruling in a written statement.
“The fact is that this administration failed to follow state law when it burdened New York City homeowners with proving they live in their own homes or be on the hook for paying a new surcharge,” Mastro said.
The city must now issue new notices to owners subject to the tax, pending an appeal of Ozzi’s decision. Ozzi ruled that the city must disclose what records it used to make the determination that a home is a “non-primary residence."
In the separate lawsuit filed against New York state on Monday in Suffolk County, Wynn, Ross and Ross’ wife Hilary Geary Ross challenged the new pied-à-terre tax on constitutional grounds.
They say they already pay “significant” property taxes to the city and use fewer services than full-time residents. All three live full-time in Florida and own real estate in the five boroughs, according to the complaint.
The Rosses received a notice stating that they owe the city an additional $83,531.52 in taxes on their New York City co-op due to the surcharge, while Wynn owes an extra $183,094.69 for a property he owns in Manhattan, according to the complaint.
City Hall spokesperson Matt Rauschenbach said the city will appeal Judge Ozzi’s decision and seek a stay on his order to issue new notices.
"With a stay, we will continue implementing the surcharge fairly, efficiently and in full compliance with the law, as we have since day one," Rauschenbach said.
He also said the city will intervene in the lawsuit against the state to defend the new tax, which officials say could raise $500 million a year.
“The pied-a-terre surcharge demands that the wealthiest people who own second homes in NYC but don’t live in them pay their fair share towards funding safer streets, cleaner parks, and better schools,” Rauschenbach said.
New York State lawmakers enacted the pied-à-terre tax as part of the state’s budget in May. The city’s Department of Finance is tasked with enforcing the provision. In a court filing last month, a Department of Finance attorney said the agency had already exempted 4,000 of the 17,000 homeowners who received notice of the tax.
Gov. Kathy Hochul’s spokesperson Jen Goodman said the governor “believes some of the wealthiest people in the world, and the powerful interest groups fighting on their behalf, can afford to help pay for the police officers, trash pickup and snow removal that keep New York City running.”
She added: “When Steve Wynn and Wilbur Ross try to cast themselves as sympathetic figures in a fight over paying their fair share on multimillion-dollar second homes, they’re making the case for the pied-à-terre tax as well as anyone could."
This is a developing story and may be updated.
Tagged
housing
new york city
David Brand
David is a reporter covering housing for Gothamist and WNYC. Got a tip? Email [email protected] or Signal 908-310-3960.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Off-duty NYPD officer stabbed in the Bronx, police say
Mayor Zohran Mamdani and Commissioner Jessica Tisch planned to visit the officer in the hospital.
By
Ryan Kost
Published Oct 2, 2026 at 4:23 p.m. ET
DOC negligence factored in death at Rikers' Bellevue hospital outpost, jail officials say
The oversight board’s report documents a deadly pattern of neglect at a facility meant to keep inmates safe.
By
Brittany Kriegstein
News
DOC negligence factored in death at Rikers' Bellevue hospital outpost, jail officials say
The oversight board’s report documents a deadly pattern of neglect at a facility meant to keep inmates safe.
By
Brittany Kriegstein
Conductor on NYC subway that dragged man to death may have skipped safety check, source says
By
Stephen Nessen
NYPD still searching for man who threw burning substance on victim in East Harlem
By
Ryan Kost
Intoxication not a 'license' to rape: Hochul pushes to tighten law amid Cornell scandal
By
Walter Wuthmann
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .