NY Court Cancels All 17,000 NYC Pied-à-Terre Notices; City to Appeal
A New York Supreme Court judge vacated every mailed pied-à-terre tax notice and barred the city from shifting the burden of proving primary residence onto owners, leaving the surcharge unenforced pending an expected appeal.
On September 29, 2026, a New York Supreme Court judge in Richmond County cancelled all roughly 17,000 pied-à-terre tax notices mailed by the NYC Department of Finance, finding the agency acted arbitrarily and capriciously by skipping the individualized "initial determination" of non-primary-residence status that the statute requires. The surcharge, enacted by AB 10009 in May 2026, first falls due January 1, 2027 for the fiscal year beginning July 1, 2026, and the response deadline for notice recipients had been extended to October 6.
Two features reach beyond this case. The judge barred future notices that make liability turn on an owner proving an "exemption," reasoning primary residences are categorically outside the tax — a due-process framing that could resurface in other high-end property surcharges. He also ordered removal of the department's July 24 "Supplemental Roll," which identified owners of about 960,000 properties, roughly 99% of which are not taxable, citing exposure to harassment.
The ruling is procedural only; the city's appeal and separate constitutional challenges to the tax's validity remain pending, so recipients should watch for resumed administration.