\u201cIn rolling out these two notices, the city has arbitrarily and capriciously foisted onto New York City residents the burden of proving they are not subject to the surcharge,\u201d the three homeowners claim.<\/p>\n
Plaintiffs Rachel O\u2019Brien, Morano\u2019s wife, and Carmine Morano, his father, claim they received notices that their Staten Island homes, both primary residences, were \u201crelated to the annual non-primary residence property surcharge.\u201d<\/p>\n
The third plaintiff, Manhattanite Simon Hedley, claims he received notice that his primary residence \u201cmay be subject\u201d to the pied-\u00e0-terre tax and had to apply for an exemption by Aug. 21.<\/p>\n
The homeowners say they are \u201cnot challenging the state statute itself,\u201d only its execution. They seek a declaration preventing the city from acting on the notices, including a public roll of 900,000 homeowners potentially \u201crelated to\u201d the surcharge and 17,000 notices sent to those who \u201cmay be subject\u201d to it.<\/p>\n
They additionally want the city\u2019s finance department to scrub the 900,000-name list from its website. Considering the city has since conceded that a vast majority of properties listed on the roll \u201cwill not be subject to the surcharge,\u201d the homeowners question why it\u2019s still live at all.<\/p>\n
\u201cThe city respondents publicly posted a roll on DOF\u2019s website purporting to list hundreds of thousands of properties \u2018related to the annual non-primary residence property surcharge,\u2019 then claimed it is meaningless, yet it remains publicly posted on DOF\u2019s website,\u201d they say.<\/p>\n
In a statement to Courthouse News, a spokesperson for the mayor said the city\u2019s law department will \u201cvigorously\u201d defend against the suit.<\/p>\n
\u201cThe pied-\u00e0-terre surcharge will help deliver the city New Yorkers deserve: cleaner parks, safer streets, and critical public investments that make our city a more affordable place,\u201d Deputy Press Secretary Matt Rauschenbach said. \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<\/p>\n
The plaintiffs are represented by Randy Mastro, a vocal Mamdani critic who served as first deputy mayor under former Mayor Eric Adams until resigning in 2025, when he told reporters he \u201cwill never work for a socialist.\u201d Since then, he has brought several lawsuits against the Mamdani administration, including one seeking to block an East Village intake shelter and another, filed in July, challenging Mamdani\u2019s signature rent freeze proposal<\/a>.<\/p>\n New York Governor Kathy Hochul signed the pied-\u00e0-terre tax into law in late May as part of the state budget. She said the citywide surcharge, expected to generate at least $500 million annually, would help close the city\u2019s budget gap and ensure the wealthiest New Yorkers contribute to city services.<\/p>\n The tax applies to second homes valued at at least $5 million and second condos and co-ops valued at more than $1 million.<\/p>\n \u201cIf you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker,\u201d Hochul said in April, announcing the tax.<\/p>\n Mamdani, a Democratic Socialist, has championed the policy as part of his broader promise to tax the city\u2019s wealthy to help fund his populist policies, such as free buses and childcare. But he\u2019s faced pushback from political opponents and homeowners since its announcement, and has since agreed to push back the deadline to apply for an exception from Aug. 21 to Sept. 18.<\/p>\n Our weekly newsletter Closing Arguments offers the latest about ongoing
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