Three New York City homeowners have filed a lawsuit challenging the city’s enforcement of a new tax on high-priced second homes, The Wall Street Journal reported. The plaintiffs, including homeowner Rachel O’Brien, said in a New York state court filing that the city made procedural errors and unfairly imposed the tax.
The lawsuit does not seek to overturn the law itself. Instead, the homeowners are asking the court to delay implementation of the tax and order New York City to restart the process, saying tax officials failed to properly identify owners of luxury second homes before shifting the burden onto homeowners to prove they should not be taxed.
Their attorney, Randy Mastro, told the WSJ the rollout was “a total mess” and criticized what he called an attempt to make homeowners prove that the properties are their primary residences. The plaintiffs said they were wrongly flagged as tax targets and have had to work to show that they have lived in their New York City homes.
The New York State Legislature passed the new real estate tax measure in late May, adding taxes to New York City homes valued at $5 million or more that are not used as primary residences by their owners. The law took effect on the first day of last month and has faced strong pushback from wealthy property owners.
