Appeals court tosses lawsuit over Mamdani’s pied-à-terre tax rollout, ruling homeowners can’t sue over notices

On Wednesday, a New York appeals court dismissed a lawsuit filed against Mayor Zohran Mamdani's pied-à-terre tax, ruling that the homeowners who sued did not adequately prove they were harmed by the tax rollout. The Appellate Division, Second Department, overturned a previous judgment that had granted the homeowners injunctive and declaratory relief.

The court found that the homeowners lacked standing to sue because their claims did not demonstrate concrete injury. The seven homeowners, represented by former First Deputy Mayor Randy Mastro, challenged the Department of Finance's publication of a supplemental roll of properties and the mailing of notices to 17,000 owners who may owe the surcharge.

The court stated that simply appearing on the roll or receiving a notice was not sufficient to establish harm. The judges noted that the notice serves an informational purpose and that the legislature anticipated some inaccuracies in the list. The court also found that the homeowners did not provide evidence of misuse of the information or threats of stalking or fraud.

The tax, which aims to raise up to $380 million, has faced other legal challenges, and Mamdani has pledged to continue defending the law.