{"id":316274,"date":"2026-08-07T19:58:56","date_gmt":"2026-08-07T19:58:56","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/316274\/"},"modified":"2026-08-07T19:58:56","modified_gmt":"2026-08-07T19:58:56","slug":"lawsuit-challenges-mamdanis-new-nyc-pied-a-terre-tax","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/316274\/","title":{"rendered":"Lawsuit challenges Mamdani\u2019s new NYC \u2018pied-\u00e0-terre tax\u2019"},"content":{"rendered":"<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsj9t1ek000x27ozg47oabam@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            A group of New York City homeowners sued Mayor Zohran Mamdani and the city\u2019s finance director over the rollout of the new pied-\u00e0-terre tax Friday.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvp000l3b6r35ggbpay@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Three petitioners, Simon Hedley, Rachel O\u2019Brien and Carmine Morano, allege \u201cthe City incorrectly identified their homes as potentially subject to the surcharge despite those properties serving as their primary residences,\u201d according to a news release.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvp000m3b6rgl82hhg7@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Though the lawsuit itself does not challenge the legality of the surcharge, it does scrutinize the city\u2019s release of a tax roll that included names and addresses of over 900,000 New York City homeowners, even if they were not subject to the tax, as well as the distribution of notices sent to some of those residents.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvp000n3b6rcbxd7yni@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            According to the city\u2019s <a href=\"https:\/\/www.nyc.gov\/site\/finance\/property\/property-assessments.page\" target=\"_blank\" rel=\"nofollow noopener\">Department of Finance<\/a>, the roll includes family homes as well as co-ops and condominium units but noted \u201cthe vast majority of properties and units listed\u201d are not subject to the surcharge. 17,000 property owners received the letters alerting them that they were possibly subject to the tax.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvp000o3b6rkrsdvh9w@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            One of the homeowners bringing the lawsuit says she was wrongly listed on the property roll.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvq000p3b6rfrldy7lp@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cIt is absolutely absurd that the City publicly identified our home as a possible second residence when my husband and I live here, raise our family here, and have made it our permanent home,\u201d petitioner Rachel O\u2019Brien said in the news release. \u201cThe City had records available that could have confirmed that before publishing our name and address. Families should not be forced to correct the government\u2019s mistakes because the administration rushed a politically convenient rollout.\u201d\n    <\/p>\n<p>       <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2026\/08\/22846177-mamdani-nyc-tax-roll-00-00-11-23-still001.jpg\" alt=\"22846177 - Mamdani NYC tax roll.00_00_11_23.Still001.jpg\" class=\"image__dam-img image__dam-img--loading\" onload=\"this.classList.remove('image__dam-img--loading')\" onerror=\"imageLoadError(this)\" height=\"1920\" width=\"1080\"\/><\/p>\n<p>New York releases list of city&#8217;s elites who could be subject to new tax\n                <\/p>\n<p>The New York City Department of Finance released its annual list of names and addresses that may be subject to the new pied-\u00e0-terre tax. CNN&#8217;s Katherine Koretski reports.<\/p>\n<p>      <img decoding=\"async\" height=\"undefined\" width=\"526\" class=\"\" src=\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2026\/08\/1786132736_912_22846177-mamdani-nyc-tax-roll-00-00-11-23-still001.jpg\" alt=\"\" onerror=\"imageLoadError(this)\"\/><\/p>\n<p>New York releases list of city&#8217;s elites who could be subject to new tax<\/p>\n<p>        1:50<\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvq000q3b6rc83sjuf2@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The plaintiffs are represented by Randy Mastro, who served as first deputy mayor for former New York City Mayor Eric Adams.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvq000r3b6rk878d040@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The lawsuit is asking the court to declare the notices and the Finance Department\u2019s property roll as unlawful, as well as seeking immediate removal of the list publicly. The plaintiffs are also seeking to pause any obligation for homeowners who received the notices to respond while the case moves forward and prevent further enforcement until the court reaches a decision.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvq000s3b6r1tdr8gfq@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Matt Rauschenbach, a spokesperson for Mayor Mamdani said in a statement, \u201cAs the mayor has said, we also know that whenever government asks something new of New Yorkers, we have a responsibility to make the process clear, transparent and accessible. That is why the Department of Finance has been working around the clock to answer questions, provide assistance and ensure those subject to the surcharge have the information they need.\u201d He added, \u201cthe Law Department is prepared to vigorously\u202fdefend the city against this suit.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvq000t3b6rk9lfb317@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The pied-\u00e0-terre tax, which places a surcharge on non-primary residences in New York City valued over $5 million as well as co-ops valued at $1 million or more, was rolled out as part of Mayor Mamdani\u2019s 2027 fiscal year budget in an attempt to close the city\u2019s budget gap. Gov. Kathy Hochul backed Mamdani on this idea.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvq000u3b6r1mrw4ejo@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The administration was scrutinized by homeowners across New York City <a href=\"https:\/\/www.cnn.com\/2026\/07\/28\/politics\/video\/new-york-pied-a-terre-tax-mamdani-vrtc\" rel=\"nofollow noopener\" target=\"_blank\">for the public list<\/a> that was posted online last month, listing names and addresses of residents across the five boroughs, even if their properties were not subject to the tax. The tax roll is released annually but received heightened awareness surrounding the new tax.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmsjbxhvq000v3b6r8xfdtpc2@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Residents who were subject to the tax received a letter from the city\u2019s Department of Finance, stating they would need to prove their homes as their primary residence by a date listed to avoid the surcharge. Following backlash, Mamdani <a href=\"https:\/\/www.nyc.gov\/mayors-office\/news\/2026\/08\/mayor-mamdani-and-commissioner-lee-extend-deadline-for-pied-a-te\" target=\"_blank\" rel=\"nofollow noopener\">announced<\/a> over the weekend the deadline would be extended by four weeks, until September 18.\n    <\/p>\n","protected":false},"excerpt":{"rendered":"A group of New York City homeowners sued Mayor Zohran Mamdani and the city\u2019s finance director over the&hellip;\n","protected":false},"author":2,"featured_media":316275,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[9,56,63,65,64],"class_list":["post-316274","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/316274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=316274"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/316274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/316275"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=316274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=316274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=316274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}