NYC Homeowners Are Fighting Back Against Mayor Zohran Mamdani’s New Pied-a-Terre Tax

Three New York City homeowners are taking legal action against Mayor Zohran Mamdani‘s administration over the rollout of the city’s new pied-à-terre tax on multi-million dollar second homes.

Mamdani’s administration sent letters to all properties that could be considered a pied-á-terre based on property value and internal records, according to Business Insider. Property owners must prove they reside in the home by September 18 in order to appeal the tax.

The lawsuit states that the city’s Department of Finance “has arbitrarily and capriciously foisted onto New York City residents the burden of proving they are not subject to the Surcharge,” New York Post reported.

The Department of Finance reportedly sent 17,000 notices, warning homeowners of the potential new tax they could face.

Three homeowners — Rachel O’Brien and Carmine Morano of Staten Island, and Simon Hedley of Manhattan — at the center of the lawsuit claim the city failed “to diligently assess and determine, using the vast resources at its disposal, the properties that are actually subject to the Surcharge.”

The Department publicly published a list of nearly 1 million names to its website of properties and their valuations across the five boroughs. However, the plaintiffs claim the list “should never have been posted in the first place,” as it allegedly includes their primary properties.

The law, which took effect July 1 and was approved by the state Legislature and Governor Kathy Hochul, is meant to generate income for the city by taxing one-to-three family homes worth more than $5 million. It will also increase taxes on co-ops and condominiums valued at at least $1 million.