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NYC Can Move Forward With New Tax on High-End Second Homes, Appeals Court Rules
The ruling gives Mayor Zohran Mamdani a win as judges said 8,800 exemption requests show some owners may not owe the surcharge.
On Wednesday, a Brooklyn appeals court dismissed a lawsuit challenging New York City's pied-à-terre tax rollout, ruling that homeowner plaintiffs lacked standing to bring the complaint.
The tax, intended to raise revenue from high-value second homes, faced three legal challenges, with critics arguing the city's rollout would cause "mass confusion" for property owners.
Judges concluded the State Legislature anticipated that some initial notices would go to owners ultimately qualifying for exemptions, finding that receiving a tax notice alone did not establish concrete injury.
Two other lawsuits challenging the tax's constitutionality remain pending despite the administration's victory, though Mayor Zohran Mamdani's office did not immediately respond to a comment request.
The Department has already granted more than 8,800 exemption requests; while Comptroller Mark Levine estimated the tax could generate up to $380 million from roughly 11,200 properties, Mamdani's $500 million claim remains in question.