New York homeowners sue over retroactive pied-à-terre tax burden

A group of New York property owners has sued the Hochul administration, alleging that the recently enacted pied-à-terre tax unlawfully targets non-resident owners and was imposed retroactively to Jan. 5, months before its official passage. Among the plaintiffs are Scott Golden and Stephanie Cohen, who were billed $48,949 after selling their Upper West Side condo, and veteran preservationist Kent Barwick, whose Little Italy co-op generated an $83,603 extra charge.

The lawsuit claims the tax breaches the U.S. and state constitutions by discriminating against out-of-state buyers and imposing undue financial strain on homeowners and co-ops. The Real Estate Board of New York is funding the case, arguing the measure harms ordinary residents rather than the intended billionaire targets. Mayor Zohran Mamdani has pledged to continue the tax rollout despite a related court order, while the city plans to appeal that decision. Gov. Hochul’s office maintains that affluent second-home owners can afford the tax.