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NYC Appeals Court Allows Mamdani’s Luxury Home Tax Rollout to Resume

The ruling preserves the city’s mailing and exception process for 17,000 property owners as the court weighs claims of flawed notice.

  • On Thursday, the Appellate Division, Second Department, ruled that New York City may continue its pied-à-terre tax rollout while a legal challenge proceeds. Associate Justice Philip Hom signed an order staying the lower court's pause until a hearing on Aug. 31.
  • Staten Island Supreme Court Judge Wayne Ozzi halted the levy on Monday after homeowners sued, alleging the city's notification of 17,000 people regarding tax eligibility created confusion about who must pay.
  • Mayor Zohran Mamdani's surcharge targets one- to three-family homes valued at $5 million or more and condos valued at $1 million or more, with rates reaching 6.5%, projected to generate $500 million annually.
  • President Donald Trump declared the tax "must be stopped, NOW!" on Tuesday, while attorney Randy Mastro, representing plaintiffs, argued the city "botched the rollout" of the surcharge.
  • Homeowners have until Sept. 18 to file for an exception to the tax, as the next hearing on the rollout's legality is scheduled for Aug. 31 in Judge Ozzi's courtroom.
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Smart Cities Dive broke the news on Thursday, August 13, 2026.
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