A New York judge halted Mayor Zohran Mamdani’s luxury home tax rollout Monday after the city published private information of over 900,000 homeowners without properly verifying which properties actually qualified for the surcharge.
Court Stops Tax Collection and Data Exposure
Judge Wayne Ozzi issued a temporary restraining order preventing the Mamdani administration from collecting the pied-a-terre tax, enforcing deadlines, or sending additional notices to homeowners. The order came after attorney Randy Mastro argued the city published a supplemental property roll containing names, addresses, and property values of hundreds of thousands of New Yorkers without first determining whether their properties qualified as non-primary residences subject to the tax.
The surcharge targets second homes valued above five million dollars. However, Mastro told the court the city failed to conduct required individualized determinations before notifying homeowners, effectively shifting the burden of proof onto residents to demonstrate their homes were primary residences. He characterized the public disclosure of homeowner information as doxxing that unleashed confusion and backlash across the city.
City Accused of Skipping Required Homework
Three New York City homeowners filed the lawsuit after receiving notices suggesting their primary residences might face the surcharge. The plaintiffs do not challenge the tax itself, but argue the administration improperly implemented it by failing to use available information to make initial determinations. Mastro pointed to plaintiff Simon Hedley, who ultimately received an exemption after providing tax records, as proof the city could have conducted proper research before mailing notices.
City attorney Steven Banks defended the rollout, arguing that freezing the process would hurt taxpayers seeking exemptions and disrupt established deadlines. The hearing grew contentious as the attorneys clashed over whether the notices terrorized homeowners. Banks sharply told Mastro to remain silent during his arguments.
What This Means
The ruling represents a significant setback for the Mamdani administration’s tax collection efforts. Outside the courthouse, Mastro declared victory for all New York City homeowners, stating the mayor botched the rollout by sending letters to thousands of residents who should never have received them. The city must now conduct proper individualized determinations before proceeding with the luxury home surcharge, a process that could take months and delay millions in expected revenue.