NYC Judge Deals Zohran Mamdani’s ‘Second Home Tax’ on the Wealthy a Blow [WATCH]

New York City Mayor Zohran Mamdani quickly appealed Tuesday after Judge Wayne Ozzi ordered the cancellation of notices already mailed for the mayor’s second home tax rollout. The appeal triggered an automatic stay, putting the lower court’s ruling on pause.

A city official said the pause lets the administration press ahead despite the judicial rebuke. “The auto stay allows the city to continue, as we have been, with the implementation of the pied-à-terre surcharge and puts the lower court’s order on pause,” the official said.

Just hours earlier, Ozzi found that the city had failed to follow required procedures before mailing the notices. He described the rollout as “arbitrary and capricious, affected by errors of law, and in violation of the recipients’ due process rights,” according to the ruling.

The decision focused on how the city implemented the tax rather than eliminating the policy itself. Ozzi said the tax could still survive if officials corrected the process.

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Under the ruling, the city can remove its current list of taxed properties from its website and post a corrected list after following the proper procedures. New notices must then be mailed in compliance with the law.

The decision delivered a legal speed bump as Mamdani approaches nearly a year since his election as New York City mayor. It also joins several other legal challenges facing his government first agenda.

Mamdani has faced legal pushback over his rent freeze plan, which landlords have characterized as overly punitive. His state sponsored grocery store proposal has drawn challenges from the National Supermarket Association over what the group considers unfair competition.

The mayor has also encountered opposition over changes to specialized high school admissions. Some parents believe those changes unfairly discriminate against Asian American enrollees.

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Mamdani announced the second home tax in April. In its original form, the plan would impose an annual surcharge on one to three family homes, condominiums and cooperative apartments valued above $5 million.

The surcharge would apply only to owners who also possessed additional property outside New York City. Mamdani promoted the proposal as a way to make wealthy property owners contribute more toward the city budget.

“Thanks to the support of Governor Hochul, we are one step closer to balancing our budget by taxing the ultra-wealthy and global elites with a pied-à-terre tax, the first of its kind in our state. Alongside the governor, our administration is fighting every day to make sure we address this fiscal deficit fairly, where the wealthy contribute what they owe and our budget reflects our commitment to the working New Yorkers being priced out of our city,” Mamdani said when the plan was announced.

Following Tuesday’s decision, representatives for Mamdani said the mayor would stand by the proposal. City Hall showed no signs of voluntarily shelving the tax while the legal battle continues.

Matt Rauschenbach, a spokesperson for the mayor, called the surcharge a “basic principle of fairness.” He argued that New York City should not be a “tax haven for the wealthy few.”

“If you can afford a luxury second home in New York City, you can afford to pay your fair share for the schools, streets and parks that make this city work,” Rauschenbach said.

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Rauschenbach cast the legal challenge as a battle between the administration and wealthy property owners. “Our administration is fighting every day to deliver for working New Yorkers. The ultra-wealthy are fighting in court to avoid paying their fair share. They have filed lawsuit after lawsuit to protect their privilege, and we will not back down.”

The mayor’s office also rejected Ozzi’s decision and pledged to continue the rollout under the automatic stay. “Today’s decision is wrong, and we will invoke a stay of the injunction. With a stay, we will continue implementing the surcharge fairly, efficiently, and in full compliance with the law, as we have since day one.”

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