President Donald Trump said on Aug. 11 that he is exploring whether the federal government has a legal right to stop New York City’s tax on luxury second homes pushed by its mayor and passed by the state legislature.
In a post on social media, Trump said the tax “is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return.”
Calling the tax a dangerous political “experiment,” Trump said it “will destroy” what was once a great city and state, and is “pure Amateur Hour.”
Mayor Zohran Mamdani’s office, in response to an Epoch Times inquiry, pointed to comments the governor made on Aug. 10.
“There are few things more certain in New York City than death, taxes, and [former first deputy mayor] Randy Mastro filing a lawsuit against this administration,” he said. “So we look forward to vigorously defend our city’s position in court as we have done so with the previous lawsuits that he has filed and I’m sure with the lawsuits that he will continue to file in the months and years to come.”
The pied-à-terre tax was proposed by Mamdani in April, in partnership with New York Gov. Kathy Hochul. “Pied-à-terre,” a French term for a second home, translates to “foot on the ground.”
Mamdani’s office said at the time that the annual tax would be imposed on “one to three family homes, condominiums, and co-ops valued above $5 million when owners have a separate primary residence outside of New York City.”
The mayor said the tax is expected to garner $500 million annually for New York City by targeting “ultrawealthy out-of-city residents and global elites who use New York City real estate as a vehicle for wealth storage rather than as homes.”
Mamdani said on Aug. 10 that it’s “a surcharge that will help fund safer streets, that will help fund stronger schools, and it will help fund the city that New Yorkers deserve.”
State Supreme Court Judge Wayne M. Ozzi on Aug. 10 temporarily blocked the pied-à-terre tax, saying the city wrongfully flagged their primary homes as applicable to the tax.
A group of residents sued the city, saying its mailed notices informing residents that their home was subject to the tax “do not constitute proper notice under tax law” and “arbitrarily and capriciously foisted onto New York City residents the burden of proving they are not subject to the surcharge.”
The residents said they face “irreparable harm” from the notices.
“These homeowners must now prove that they live in their own homes, to the City Respondents’ ‘satisfaction,’” the lawsuit said, labeling it an “illegal burden.”
The mayor’s office said the city will appeal the ruling.
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