A New York court has ordered the city to correct and resend notices for its secondary home tax after finding that inaccurate property records could cause confusion and penalties, while the city appeals the ruling and faces further legal challenges.
A Staten Island court judge has directed New York City to send corrected notices to property owners in the secondary home tax case. The ruling came from Justice Wayne Ozzi of Richmond County’s state Supreme Court on 29 September 2026.
The judge found that the city’s finance department caused confusion by releasing a supplemental list of more than 900,000 properties potentially subject to the tax and mailing notices to 17,000 homeowners. Ozzi stated in his decision that homeowners faced “substantial harm and needless penalties.”
The court ordered the finance department to remove the supplemental roll from its website, cancel the 17,000 letters already sent, and create new individualised notices based on the most recent tax records. The city must use proper documentation to determine which properties qualify as secondary residences rather than primary homes.
The city filed an appeal on 29 September 2026 and obtained a stay that temporarily blocks the court’s order. Mayor Zohran Mamdani’s office said the stay allows the city to continue implementing the tax “fairly, efficiently and in full compliance with the law.” This follows New York Governor Kathy Hochul and Mayor Zohran Mamdani unveiling a joint proposal on 15 April 2026 to impose a new tax on second homes valued above USD 5 million.
The secondary home tax targets wealthy owners of multiple properties in New York City. City officials project it will generate USD 500 million annually. Homeowners who received notices have until 6 October 2026 to prove a disputed property serves as their primary residence.
The tax faces mounting legal challenges.
Former US Secretary of Commerce Wilbur Ross and casino owner Steve Wynn filed a lawsuit on 28 September 2026 in a Long Island court, arguing the tax unconstitutionally discriminates against nonresidents.
President Donald Trump has called the tax a “dangerous political experiment” and indicated the federal government may pursue legal options to overturn it.
