Judge Temporarily Stays Enforcement of Pied-a-Terre Tax

Yesterday, a Staten Island judge temporarily stayed enforcement of New York City’s Pied-a-Terre Tax. In Rachel O’Brien et al. v. The City of New York, Zohran Kwame Mamdani, the New York City Department of Finance, and related officials, the petitioners brought an Article 78 proceeding and declaratory judgment action challenging the City’s implementation of the new surcharge/tax on certain non-primary residences in New York City. On August 10, 2026, the Supreme Court, Richmond County, issued a decision in favor of the petitioners and entered a temporary restraining order that preliminarily enjoins the City from: (1) continuing to post, or otherwise permitting public access to, the supplemental market value roll published by the Department of Finance; (2) taking any further action based on that roll or the notices mailed to property owners; and (3) enforcing the September 18, 2026 exemption application deadline.

The Court has scheduled a hearing later in August 2026 on the petition and the request for preliminary injunctive relief, at which time the City may oppose the application and defend its implementation of the Pied-a-Terre Tax. We also have reason to believe that the City intends to appeal this decision, which may affect the validity of the recently issued temporary restraining order.

Given the uncertainty surrounding the ultimate impact of the Court’s decision, we recommend that affected property owners continue gathering information needed to support any available exemptions and remain prepared to file exemption applications until further developments provide greater clarity.

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For questions regarding the pied-à-terre tax or potential exemption eligibility, reach out to your BBG attorney of record or contact us here.