Judge Orders New York to Scrap Rollout of Second-Home Tax and Start Over

Tax partner Mark A. Limardo, was quoted in The New York Times in an article discussing a Staten Island judge's decision to side with a group of homeowners who sued the city over the rollout of the second-home tax, also known as the "pied a terre" tax, finding that the city mishandled the rollout of the tax and must start over. The homeowners argued that the current administration's Department of Finance "did not try hard enough to determine who should owe the tax before moving forward to collect it." The lawsuit did not challenge the legality of the tax on second homes.

The article notes that "it is not clear how the judge’s decision will affect the city’s ability to collect the money as the case continues: The first tax bills typically go out in November, and the funds must be collected by the spring for this fiscal year."

Following the decision, the city filed papers stating that it would appeal the decision. 

"But if Justice Ozzi’s order is upheld, the city faces the difficult proposition of starting from scratch to send out tax bills before the end of the year," said Mark.

“This is a big chunk of work that the city will have to engage in,” he said. “It remains to be seen if the city has the resources right now to even do it, and to do it quickly.”

Read the full article in The New York Times here. Access may require a subscription.