New York’s High-End Second-Home Tax: Appeals Court Allows Mamdani to Move Forward with Pied Terre Plan

Appeals panel reverses ruling

The appellate judges’ decision on Wednesday overturned a September ruling by a Staten Island judge. That judge had found the city mishandled the tax’s rollout and ordered officials to begin again.

The city appealed immediately and continued rolling out the tax while the lawsuit proceeded. The appeals court ruling allows those efforts to continue, but does not resolve the other legal challenges.

A key part of Mamdani’s agenda

Mamdani has presented the tax as a way to fulfill his campaign promise to “tax the rich.” He has also said it could help close the city’s budget gap. The ruling is a major legal win for the mayor. His lawyers are also defending other campaign policies, including a rent freeze on rent-stabilized apartments.

Homeowners may keep challenging

Randy Mastro, the lawyer for the homeowners who sued, did not say whether he planned to appeal. He criticized the rollout and said it would “go unremedied.” Mastro said he believed challenges to the tax’s constitutionality would succeed. Those arguments are central to other lawsuits, including one he brought.