Judge pauses NYC pied a terre tax rollout, luxury rentals jump

Late Monday afternoon, a judge dealt a blow to New York City Mayor Zohran Mamdani’s plan to charge a so-called pied-à-terre tax on vacant second homes owned by wealthy non-residents. Wayne Ozzi, a Staten Island judge, issued an emergency pause on implementing the tax. Ozzi sided with homeowners who sued the city Friday. They did not challenge the tax itself but a rollout they said cast too wide a net, forcing New York City homeowners to prove residency. In the temporary restraining order, Ozzi ruled the city cannot take further enforcement action on tax notices sent to roughly 17,000 homeowners. The next hearing is set for Aug. 31. However the tax shakes out, it has already reshaped the city’s ultra-luxury rental market. Mamdani’s administration has sought to expand affordable housing, but the tax plan is boosting supply of high-end rentals commanding five- and six-figure monthly rents. “The rental market is becoming part of the conversation for owners who might otherwise have been considering a sale,” Michelle Griffith, a broker with Douglas Elliman, told HousingWire TBD. “For some owners, renting can provide a way to generate income from a property while maintaining ownership and...