Fed-Up NYC Homeowners Take to Court to Fight Back Against Mamdani's New Tax 'Debacle'
A group of New York City homeowners is suing Mayor Zohran Mamdani and the city of New York over the pied-à-terre tax, which is a surcharge property tax on second homes.
The surcharge applies to individual homes valued at $5 million or more and co-ops and condominiums with a cost of $1 million or more that are “not a primary residence,” according to the 23-page complaint.
“Petitioners are not challenging the State statute itself,” the court document read.
Rather, plaintiffs Rachel O'Brien, Carmine Morano, and Simon Hedley are challenging the rollout of the tax, including the “public distribution of a roll listing over 900,000 New York City homeowners' names, addresses, and property values described as ‘related to’ the Surcharge.”
Further, they are objecting to the written notice sent to 17,000 homeowners so far, informing them they “may be subject” to the surcharge but can apply for an exemption.
“In 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, instead of the City Respondents discharging the City's own statutory obligation in the first instance to diligently assess and determine, using the vast resources at its disposal, the properties that are actually subject to the Surcharge,” the complaint read.
The plaintiffs are demanding an immediate removal of the 900,000-name list from the Department of Finance website, arguing it "set off a panic among New York City homeowners."
"The rollout of this surcharge is a debacle," Randy Mastro, a lawyer for the plaintiffs, told The Wall Street Journal. "It tried to switch the burden to New York City homeowners to prove they live here."
Mastro served as first deputy mayor under Mamdani’s predecessor, Eric Adams, the New York Post reported.
New York University business professor and “Pivot” podcast host Scott Galloway, who supports the tax, criticized the way the Mamdani administration has handled it.
“I’m actually in favor of the pied-à-terre tax. An absentee wealthy owner, in my view, should be subsidizing the property taxes of a nurse working at NYU Langone [medical center] that has to spend 40 percent of her income on rent,” he said on a podcast recently.
“But to release addresses, it feels like, in sum, implying you’ve done something wrong… and I want everyone to know who they are. This feels like just straight up doxxing to me,” the professor added.
“He’s taken a legitimate source of tax revenue, and he’s turning it into a wanted poster,” Galloway said. “What is the upside here? Why is he doing this?”
Scott Galloway is once again lamenting that Mamdani released his information on the pied-à-terre tax list:
— Western Lensman (@WesternLensman) August 7, 2026
"That was public information…But to release addresses, it feels like implying you've done something wrong…And I want everyone to know who they are."
"This feels like… https://t.co/p0x6kf6AIO pic.twitter.com/SUdh8T2HnV
The New York Post reported that Mamdani spokesman Matt Rauschenbach said the Department of Finance "has been working around the clock" to provide information to people who may be subject to the new tax.
"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."
Rauschenbach said the city will challenge the suit in court.
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