Note to future mayors: Naming and shaming nearly a million homeowners in your city isn’t a good use of political capital. Eight months after he became New York’s mayor, Zohran Mamdani’s botched rollout of his pied-à-terre tax is widely seen as bringing an end to his honeymoon period.
A group of homeowners sued the city for taking a “guilty until proven innocent” approach to force them to prove that they are not liable for the tax.
A Staten Island judge on Monday criticized the city’s missteps and temporarily blocked it from moving ahead with the surcharge, which applies to non-primary homes valued at more than $5 million and condominiums and co-ops valued at more than $1 million. But an appellate judge ruled on Thursday that the tax’s implementation can continue while the lawsuit plays out.
Mamdani invited the drama in July by publishing a searchable list of 960,000 properties that may be subject to the tax. The roll includes owner names, addresses and the property’s valuation. Property tax information is public in New York, and the mayor’s office says posting the list is required by state law. The lawsuit says it is not.
Against the backdrop of Mamdani’s class warfare, many homeowners feel unfairly targeted. High-profile instances of anti-capitalist violence may contribute to the anxiety. On Friday, Luigi Mangione pleaded guilty to federal charges of stalking leading to death and admitted to shooting UnitedHealthcare CEO Brian Thompson outside a Manhattan hotel in 2024.
Mamdani has not helped matters by singling out successful individuals. The mayor recorded a video earlier this year outside the apartment building where billionaire investor Ken Griffin lives. The stunt was an uncalled-for attack on someone whose alleged sin is owning a penthouse in the world’s financial capital.
Mamdani’s list is still live, and the mayor’s office seems to have no intention of taking it down. Podcaster Scott Galloway, who previously supported the tax, complained that the list “doxed” him, and he accused Mamdani of using it as a “wanted poster.” A Democratic City Council member said she is rethinking her support for the levy after seeing her primary residence of 30 years included on the list and hearing from many angry constituents.
The city also mailed letters to about 17,000 people whom the mayor’s office suspects are actually subject to the tax. But the government doesn’t have the data to prove who should pay the surcharge, so it is requiring letter recipients to submit documentation proving they were wrongfully accused.
There is little grace period. Exemption applications are due by mid-September, an extension of the original deadline in late August. More than 20 percent of recipients have started applications, including some who say they have lived full-time in the city for decades. The onus should not be on all of them to prove they don’t need to pay.
The underlying surcharge is also excessive. Owners of condos valued between $1 million and $3 million will pay a 4 percent annual tax on the property’s value. The rate increases to 5.25 percent for $3 million to $5 million properties and 6.5 percent for condos worth more than $5 million. Some owners will see their property tax bills double.
Real estate agents in Miami must be cracking open the Champagne.
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