Mamdani Wins Appeals Court Fight on NYC Luxury Second-Home Tax

Nov 05, 2026 2:54 PM
Advertisement
Mamdani Wins Appeals Court Fight on NYC Luxury Second-Home Tax
AP Photo/Seth Wenig

New York's communist-adjacent (OK, you can probably remove the "adjacent") Mayor Zohran Mamdani, who never saw a tax that didn't make him all shivery with delight, may be one step closer to punishing New York with another one. A legal win now clears another obstacle to Mamdani's administration implementing a punitive tax on well-off people who have the temerity to own a second home in the city.

Advertisement

New York City Mayor Zohran Mamdani scored a legal victory Wednesday after a state appeals court reversed a lower court ruling that had ordered his administration to redo the rollout of a tax on high-end second homes.

The four-judge panel unanimously dismissed the homeowners' lawsuit, finding that the plaintiffs lacked legal standing. The decision overturned a September ruling by a Staten Island judge who had ordered the city to restart the tax's implementation.

The ruling allows Mamdani's administration to continue implementing the surcharge — also known as a pied-à-terre tax — a key part of his agenda to raise taxes on wealthy New Yorkers and help close the city's budget gap. 

The appeals court didn't rule on the constitutionality of the tax itself. Instead, it found that the homeowners challenging the city's rollout hadn't demonstrated the actual harm necessary to establish standing.

Yeah, here's the thing: This tax won't do anything to help close the city's budget gap, any more than any "tax the wealthy" scheme ever would or ever will. That's just not going to happen. The opposite may well happen, as it seems certain a fair number of people will just dump those properties, and the market likely won't be able to absorb them all; the prices of these kinds of high-end homes may well drop, and we would think that would be a good thing, except that Mamdani's policies and his loss of control of the streets and subways are already driving away the very people who could have afforded those homes. 

Advertisement

Randy Mastro, an attorney representing the homeowners, criticized the court for dismissing the lawsuit without addressing the merits of their challenge.

"It’s a shame that, after the City admittedly botched the rollout of this surcharge, the court today took the procedural offramp of standing to avoid addressing the merits of this case," Mastro said in a statement shared with Fox News Digital. "What the City has done here is unconscionable — trying to ensnare thousands of people who don’t owe this surcharge into having to prove they live in their own homes or else have to pay it. 

"But now, this lawless and chaotic data collection scheme will go unremedied."

So, instead of a fancy second-home tax, he gets — maybe — some lowered property tax revenues.

Now, the pied-à-terre tax Mamdani favors isn't out of the legal woods yet. There are more challenges that the mayor and his fellow travelers will have to get past if they want to keep soaking homeowners. The tax was approved by the New York state legislature, and yet there are challenges in places like Suffolk County that could still affect the rollout of this tax.

Mastro said the surcharge faces another legal test next month over its constitutionality. Mamdani said his administration would continue defending the law against separate challenges in Suffolk County.

Advertisement

A city, a state, or a country cannot, never has, and never will tax itself into prosperity. That's something that the Left seems incapable of learning. And, while it would be amusing to see this and other of the mayor's proposals sink the city into penury, it would be a disaster economically.

Stay tuned. 

Editor's Note: The Democrat Party has been infected by socialism, and it's spreading FAST. Democrats are claiming there's nothing to worry about, but we know the truth.

Help us continue to shine a light on the socialist takeover by joining RedState VIP.  Use promo code FIGHT to get 60% off your VIP membership.

VIP

Join the Conversation

VIP members get the ability to comment on articles.

Recommended

Trending on RedState Videos