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Appeals Court Dismisses Lawsuit Against New York City's Pied-à-Terre Tax
New York appeals court dismisses homeowners' lawsuit against New York City's pied-à-terre tax, reversing a Staten Island judge's order.
Key points
- The appeals court ruled the homeowners lacked standing and were not injured by the roughly 17,000 notices.
- The surcharge covers only non-primary residences, with a $5 million threshold for houses and $1 million for co-ops and condos.
- Steve Wynn and Wilbur Ross and his wife have a separate suit pending in Suffolk County, with hearings scheduled in December.
Why it matters. The ruling keeps the pied-à-terre surcharge in place, a revenue pillar in the city's plan to close a $12 billion budget gap, though a separate challenge to the state law remains pending.
A New York state appeals court on Wednesday dismissed a homeowners' lawsuit against New York City's pied-à-terre tax, ruling that the plaintiffs lacked standing and were not injured by the roughly 17,000 notices. All four judges agreed, reversing an earlier Staten Island judge's September 29 order that had required the city to cancel the notices.
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Appeals Court Dismisses Lawsuit Against New York City's Pied-à-Terre Tax
A New York state appeals court on Wednesday dismissed a homeowners' lawsuit that had disrupted the rollout of New York City's pied-à-terre surcharge. The court threw out an earlier Staten Island judge's ruling that had ordered the city to cancel about 17,000 notices. The appeals judges found that the homeowners lacked standing to bring the case. The surcharge applies to non-primary homes valued above $5 million and runs through July 2028. A separate legal challenge to the tax remains active, so the policy's future is not yet settled. The city administration of Mayor Zohran Mamdani presented the ruling as a legal victory.