Zohran Mamdani Administration Faces Pied-à-Terre Tax Lawsuit in New York City

• Three New York City homeowners have filed a lawsuit against Mayor Zohran Mamdani's administration over the rollout of the pied-à-terre tax.
• The plaintiffs claim the city has unfairly forced them to prove they shouldn't have to pay the tax, rather than identifying exempt homeowners.
• The lawsuit seeks a declaration preventing the city from acting on notices sent to homeowners who 'may be subject' to the surcharge.

"In rolling out these two notices, the city has arbitrarily and capriciously foisted onto New York City residents the burden of proving they are not subject to the surcharge," the three homeowners claim.

Three New York City homeowners have filed a lawsuit against Mayor Zohran Mamdani's administration over the rollout of the pied-à-terre tax. The plaintiffs, including two family members of Republican Councilman Frank Morano, claim the city has unfairly forced them to prove they shouldn't have to pay the tax. They argue that instead of identifying homeowners who should be exempt from the surcharge, the city is requiring residents to apply for exemptions and provide proof of their primary residence.

The lawsuit focuses on the execution of the pied-à-terre tax, rather than challenging the state statute itself. The plaintiffs are seeking a declaration preventing the city from acting on notices sent to homeowners who 'may be subject' to the surcharge. They also want the city's finance department to remove the 900,000-name list from its website, which has been criticized for being inaccurate and misleading.

The lawsuit highlights concerns about the transparency and accessibility of the pied-à-terre tax rollout. The city's decision to publicly post a list of potential tax targets without clear instructions on how to navigate the exemption process has caused confusion among homeowners. Lawyers advising clients on NYC properties may need to review the impact of this lawsuit on their clients' compliance with the pied-à-terre tax, including whether they should seek exemptions or challenge the city's notices.

Lawyers advising clients on NYC properties may need to review the impact of this lawsuit on their clients' compliance with the pied-à-terre tax, including whether they should seek exemptions or challenge the city's notices.

Source: Original reporting via Courthouse News