NYC pied-à-terre tax blocked by court; Steve Wynn joins homeowners' lawsuit

A Staten Island Supreme Court judge, Wayne Ozzi, declared New York City’s implementation of the newly enacted pied-à-terre tax unlawful, labeling the blanket mailing of notices as arbitrary and capricious. The ruling mandates that all previously sent notices be withdrawn and that the Department of Finance issue new determinations individually, based on each property’s eligibility. The tax, signed into law by Gov. Kathy Hochul and the state legislature, applies to secondary residences worth at least $5 million, or $1 million for co-ops and condos, that are not primary homes.

Plaintiffs led by Staten Island homeowner Randy Mastro, joined by casino billionaire Steve Wynn and ex-Commerce Secretary Wilbur Ross, contend the city failed to follow state requirements for individualized assessments. City officials, who project the surcharge could raise more than $500 million a year for public services, have not commented but are expected to appeal. Wynn’s own notice, received in July, demands a $183,000 payment for his Manhattan property.