A judge has hit pause on New York City’s pied-à-terre tax after homeowners filed a lawsuit against New York City. The lawsuit focuses on the city’s rollout of the tax, as homeowners contend City Hall didn’t do enough to determine who would pay the tax and instead put the onus on homeowners to figure it out. A judge on Tuesday ruled against the city and ordered officials to restart the process with a little more due diligence. The court said the city cannot put property owners on a list and make them prove they are exempt. politics Sep 4 Blakeman campaign accused of sending fake pied-à-terre tax letters to New York voters New York City Aug 26 Thousands already receive exemption from new NYC pied-à-terre tax Donald Trump Aug 11 Trump ‘looking to see' if feds can stop New York's pied-à-terre tax Instead, the city’s Department of Finance has to give proof as to why it believes a homeowner should have to pay the tax, then give the owner a chance to fight it. The city initially sent about 17,000 notices to property owners that it believed could be required to pay the tax, which applies to people who own second homes in NYC valued from $1 million to more than $5 million. The city plans to ask the court to pause the ruling while it continues to fight the case through the appeals process. “The ultra-wealthy are fighting in court to avoid paying their fair share. They have filed lawsuit after lawsuit to protect their privilege, and we will not back down,” said Matt Rauschenbach, a spokesperson for the mayor. “Today’s decision is wrong, and we will invoke a stay of the injunction. With a stay, we will continue implementing the surcharge fairly, efficiently and in full compliance with the law, as we have since day one.” City Hall went on to say that “anyone who can afford a luxury second home can also afford to pay their fair share for schools, streets and parks.” The tax on luxury second homes also faces other moneyed opposition: casino mogul Steve Wynn and former Trump administration secretary Wilbur Ross. The pair of wealthy part-time New Yorkers sued the state on Monday over the tax, arguing the surcharge is unconstitutional because it discriminates against people who don’t primarily live in the state. According to the case, both men are residents of Florida but are staring down massive bills under the tax, which is meant to raise revenue from wealthy people who own ritzy pads in the Big Apple but don’t pay local income taxes because they live most of the year elsewhere. Ross, an investor who was commerce secretary during President Donald Trump’s first term, could be on the hook for more than $83,000 for his co-op in Manhattan. And Wynn, developer of a luxury casino empire, is facing a possible charge of over $183,000 for his place in the city. The lawsuit, which was filed against the state in a court on Long Island, also argues that people who own pied-à-terres already fork over serious coin on property tax here and, because they are wealthy, make major contributions to the city’s charitable and cultural institutions “for the benefit of all New Yorkers.” In a statement, a spokesperson for Gov. Kathy Hochul said “When Steve Wynn and Wilbur Ross try to cast themselves as sympathetic figures in a fight over paying their fair share on multimillion-dollar second homes, they’re making the case for the pied-à-terre tax as well as anyone could.” Getting the surcharge into state law was a major boon for Mayor Mamdani in his quest to raise taxes on the rich to help pay for his progressive agenda in the city. But implementing it has so far been a bumpy ride. The tax is expected to bring $500 million to the city annually by slapping a new surcharge on one-, two- and three-family homes valued at more than $5 million, as well as condos and co-ops valued at $1 million or more, if those dwellings are not a person’s primary residence. It would only apply to second homes in New York City, not any of the state’s other wealthy enclaves, like the Hamptons on Long Island, where Ross also owns a home, according to his lawsuit. ...read more read less