New York homeowners sue over pied-à-terre tax rollout, court pauses enforcement

A coalition of residents, notably Rachel O’Brien—spouse of City Councilman Frank Morano—and Simon Hedley, have filed suit against New York City over the pied-à-terre tax rollout. They contend that the Department of Finance’s publicly posted supplemental tax roll incorrectly flagged hundreds of homes, including primary residences valued below the $5 million threshold, effectively doxing owners and sparking panic. The complaint also lists Carmine Morano, O’Brien’s father-in-law, as a co-plaintiff.

While Hedley backs Mayor Zohran Mamdani’s tax concept, he objects to the haphazard implementation that forces homeowners to prove exemption. A Staten Island judge issued a temporary injunction on Monday, pausing enforcement of the tax, though the mayor’s office plans to appeal. The lawsuit has garnered widespread community support, with many neighbors echoing the sentiment that the city botched the rollout.