A Staten Island state court has blocked New York City’s rollout of its new second-home tax notices, ordering the city to cancel all of the notices it sent and start over on who should be covered. Judge Wayne Ozzi said Tuesday that the city did not follow proper procedure when it identified properties as subject to the surcharge.
The ruling does not strike down the tax itself. Ozzi said the city must review all information available to it before deciding a property is a second home and must provide records supporting that determination. He also said the city’s Department of Finance ignored the required process before sending out notices.
The tax, which took effect July 1, applies to certain high-value homes that are not the owner’s primary residence. The city had expected it to raise at least $500 million a year and sent notices in July to about 17,000 property owners, but later acknowledged it had not even checked income tax returns before mailing the warnings.
The lawsuit was filed by attorney Randy Mastro, who served as first deputy mayor under former Mayor Eric Adams, on behalf of three homeowners. The city may appeal the ruling, and sources said it was likely to seek a stay that would pause enforcement while the case continues.
