ADVERTISEMENT
ADVERTISEMENT
NYC homeowners sue Mamdani over pied-à-terre tax rollout
The lawsuit is asking the court to declare the notices and the Finance Department's property roll as unlawful.
-
1759953093.png)
Staff Reporter - Sat, 08, Aug 2026
- 04:10 EDT
- 24
Mayor Zohran Mamdani / X/@NYCMayor
A group of homeowners from New York City has sued Mayor Zohran Mamdani and the city's finance director over the rollout of the new pied-à-terre tax.
Three petitioners, Simon Hedley, Rachel O'Brien and Carmine Morano, allege that “the city incorrectly identified their homes as potentially subject to the surcharge despite those properties serving as their primary residences,” according to a report by CNN.
While the lawsuit does not challenge the legality of the tax itself, it criticizes the Department of Finance for publishing a tax roll containing the names and addresses of more than 900,000 New York City homeowners — the vast majority of whom do not owe the tax. The complaint also targets the distribution of notices sent to some of those residents.
According to the city's Department of Finance, the roll includes family homes as well as co-ops and condominium units, but noted that “the vast majority of properties and units listed” are not subject to the surcharge. Seventeen thousand property owners received the letters alerting them that they were possibly subject to the tax, the news report said.
One of the homeowners bringing the lawsuit says she was wrongly listed on the property roll.
“It 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,” petitioner Rachel O'Brien was quoted as saying in the news release. “The city had records available that could have confirmed that before publishing our name and address. Families should not be forced to correct the government's mistakes because the administration rushed a politically convenient rollout.”
Also Read: Mamdani releases documentary on fight that changed NYC housing
The lawsuit is asking the court to declare the notices and the Finance Department's 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.
Matt Rauschenbach, a spokesperson for Mayor Mamdani, said in a statement, “As 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.” He added, “The Law Department is prepared to vigorously defend the city against this suit.”
The pied-à-terre tax, which places a surcharge on nonprimary 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's 2027 fiscal year budget in an attempt to close the city's budget gap. Gov. Kathy Hochul backed Mamdani on this idea.
The administration was scrutinized by homeowners across New York City for the public list 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.
Following public pushback and confusion over the initial tax roll, Mayor Mamdani announced an extension for property owners to submit proof of primary residency, pushing the compliance deadline back four weeks to Sept. 18.
Discover more at New India Abroad.
Leave A Comment
Related
.jpg)
ADVERTISEMENT
ADVERTISEMENT
E Paper
Video
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login