Judge orders NYC to withdraw pied-à-terre surcharge notices

A Staten Island judge on Tuesday ordered New York City to cancel every pied-à-terre tax notice it mailed to owners of luxury second homes, throwing a wrench into Mayor Zohran Mamdani’s plan to use the tax money to help close the city’s budget gap. Justice Wayne M. Ozzi left the state-imposed surcharge on non-primary residences in place and faulted the city only over how it enforced the law. Owners sued over how the notices were rolled out, not the surcharge’s legality. But billionaire casino magnate Steve Wynn, former Trump administration Commerce Secretary Wilbur Ross and Ross’ wife, Hilary, are challenging the state law that authorized the surcharge. They sued the state Monday in Suffolk County to invalidate the surcharge, arguing that it is an illegal property tax and discriminates against nonresidents. Wynn and the Rosses live in Florida. The Rosses received a notice for $83,531.52, and Wynn received one for $183,094.69. The surcharge covers non-primary residences valued at $5 million or more for houses and $1 million or more for co-ops and condos. The threshold rises to $5 million for all types in 2028. City officials backed the surcharge to help close a $12 billion budget gap...