NYC pied-a-terre tax notices get an appeals court green light

New York City Mayor Zohran Mamdani’s administration won another round on the pied-à-terre tax Wednesday, when a state appeals court dismissed a homeowners’ lawsuit that had upended the surcharge’s rollout. Appeals judges threw out an earlier Staten Island judge’s ruling ordering the city to cancel about 17,000 notices. They found the homeowners lacked standing and weren’t injured by the notices. All four judges agreed. The surcharge is a pillar in the city’s plan to close a $12 billion budget gap. State officials projected it would raise about $500 million a year. The comptroller estimates the impact at closer to $1 billion before exemptions and appeals. Wednesday’s decision does not directly affect a separate suit by billionaire casino magnate Steve Wynn, former Trump administration Commerce Secretary Wilbur Ross and his wife. They have challenged the state law behind the tax. That case remains pending in Suffolk County, with hearings scheduled in December. A Staten Island judge had ruled Sept. 29 that the city skipped individualized decisions before mailing notices. The judge called the notices arbitrary and capricious and a due process violation. Under the order, the Department ...