A group of New York City homeowners has filed a lawsuit against Mayor Zohran Mamdani and the city’s finance director over the rollout of the new pied-à-terre tax. The tax, which places a surcharge on non-primary residences in New York City valued over $5 million, was rolled out as part of Mayor Mamdani’s 2027 fiscal year budget.

Lawsuit Details

The lawsuit, filed by three petitioners, alleges that the city incorrectly identified their homes as potentially subject to the surcharge despite those properties serving as their primary residences. The plaintiffs claim that the city had records available that could have confirmed their homes were primary residences before publishing their names and addresses.

The city’s Department of Finance released a tax roll that included names and addresses of over 900,000 New York City homeowners, even if they were not subject to the tax. Approximately 17,000 property owners received letters alerting them that they were possibly subject to the tax.

The plaintiffs are seeking to have the notices and the Finance Department’s property roll declared unlawful and to pause any obligation for homeowners who received the notices to respond while the case moves forward.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.