September 30, 2026

The Richmond County Supreme Court (the “Court”) struck down certain aspects of New York City’s implementation of the new high-value property tax surcharge under the “Pied-à-Terre Tax Law”; the surcharge itself, however, remains in effect. In Hedley v. Mamdani, the plaintiffs alleged that their properties were primary residences and should not be subject to the surcharge. The Court found that the New York City Department of Finance (“DOF”) improperly published a Supplemental Roll containing more than 900,000 properties and required homeowners to establish primary-residence status. DOF must revise its process for identifying properties subject to the surcharge before moving forward.

The Court found DOF’s notices arbitrary and capricious, affected by errors of law, and violative of the plaintiffs’ due process rights. DOF must remove the existing Supplemental Roll, cancel prior notices, and make individualized primary-residence determinations before issuing new notices. The order has been appealed. The decision leaves open whether the ruling also applies to qualifying secondary residences.

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