By 5 Towns Central Staff

NYC, N.Y. (Sep, 1 2026) —

A Staten Island judge is weighing whether to halt the implementation of Mayor Zohran Mamdani’s new pied-à-terre tax after homeowners challenged the way the city identified potentially affected properties.

During Monday’s hearing, State Supreme Court Justice Wayne Ozzi pressed city officials over how they determined which homeowners might owe the surcharge and whether the administration improperly placed the burden on residents to prove they qualified for an exemption.

The homeowners’ attorney, Randy Mastro, accused the city of a deeply flawed rollout that forced thousands of residents to disclose private information and, in some cases, hire attorneys to navigate the exemption process.

City attorney Steven Banks defended the administration’s approach, describing it as an evolving process in which some property owners were asked to provide additional documentation. He argued that the large number of homeowners who were ultimately granted exemptions demonstrated that the system was functioning.

The tax targets second homes valued at $5 million or more and is a key part of Mamdani’s plan to increase taxes on wealthy New Yorkers. The city’s Department of Finance was initially supposed to determine potential taxpayers using information such as property assessments and tax filings.

Approximately 17,000 property owners received notices in July, while the city recently began sending updated requests for information to roughly 11,000 additional property owners.

The lawsuit is focused on the city’s implementation and notices rather than seeking to eliminate the tax itself. The homeowners are also challenging the city’s publication of an online tax roll containing information on roughly 900,000 properties.

Justice Ozzi previously issued a temporary order blocking the tax, but an appeal allowed the city to continue moving forward. The homeowners are now seeking a permanent injunction.

A ruling is expected in the coming days or weeks.