New York appeals court tosses challenge to pied-à-terre tax rollout, handing Mamdani a legal win — but not a ruling on the tax itself

NEW YORK, Nov 4 — A New York appeals court on Wednesday dismissed a lawsuit challenging the rollout of New York City's pied-à-terre surcharge on luxury second homes, reversing a September ruling by Staten Island Justice Wayne Ozzi that had required the city to redo parts of its rollout. Mayor Zohran Mamdani called it a win for the city, but the ruling does not decide whether the tax itself is lawful.

Plaintiffs lacked standing

The Appellate Division, Second Department, in Brooklyn found that the homeowner plaintiffs had not shown they would actually be subject to the tax, and therefore lacked standing to pursue the complaint. The plaintiffs had argued that appearing on a published list and receiving notices itself caused harm, because of the resources needed to secure exemptions. The underlying suit targeted the Department of Finance's rollout, including a published list covering about 900,000 properties and a process requiring owners to seek exemptions. Reporting notes that exemptions have since shrunk the pool of potentially eligible properties to fewer than 9,000 homes, with more than 8,800 exemption requests granted.

Mamdani: an attempt by the ultrawealthy to avoid paying

In a statement, Mamdani said: “Today, an appeals court rejected an attempt by the ultrawealthy to avoid paying their fair share and ruled in favor of the City.” He said that from day one, those with the most had tried every legal avenue to shield their wealth and avoid contributing more to the city. The plaintiffs' lawyer, former Deputy Mayor Randy Mastro, said he would pursue the constitutional challenge in a separate Suffolk County case, arguing that the decisive moment would come when that case is decided next month. A similar challenge brought by developer Steve Wynn and others also remains unresolved.

What comes next

Wednesday's decision removes the setback created by this rollout lawsuit, but it does not end the broader legal fight over the surcharge, and the amount the city will ultimately collect remains uncertain. This site previously reported on the rollout dispute and a deadline extension for the tax; this is the latest development in the case.

(Sources: The New York Times, via Fox News and other reporting; The Real Deal; Law.com's New York Law Journal, Nov 4, 2026. Photo: file image of New York City Hall.)