Judge temporarily blocks Mamdani’s pied-à-terre tax on second homes
Summary
A judge has temporarily stopped New York City from enforcing a new tax on expensive second homes, called the pied-à-terre tax, after homeowners sued. The tax was meant to charge extra fees on owners of high-value properties they do not live in full-time.Key Facts
- The pied-à-terre tax targets second homes worth over $5 million and condos or co-ops worth at least $1 million.
- Homeowners sued, claiming the city wrongly labeled some primary residences as second homes.
- The judge's pause stops the city from sending more tax notices or publishing related property lists.
- About 960,000 property owners might be affected, with 17,000 addresses already notified.
- The tax was announced by Mayor Zohran Mamdani and Governor Kathy Hochul, expecting to raise $500 million yearly.
- Supporters see the tax as a way to get more revenue from wealthy owners during high living costs.
- Critics worry the tax could drive rich people away from New York City.
- Mayor Mamdani's office plans to appeal the judge’s ruling to continue implementing the tax.
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