Appeals Court Lets the Pied-à-Terre Tax Rollout Continue — At Least Through August 31

What the court decided

On Thursday, August 13, the Appellate Division, Second Department — New York's mid-level appeals court — allowed the city to continue rolling out the pied-à-terre tax while its appeal of Justice Wayne Ozzi's August 10 temporary restraining order is heard, in an order signed by Associate Justice Philip Hom, as reported by amNewYork, Bloomberg and CNBC.

The mechanics matter. When the city appealed on the night of August 10, it claimed that a government appeal automatically suspends the order being appealed (CPLR 5519) — and its website behaved accordingly, as we verified on August 12. The petitioners' lawyer, Randy Mastro, filed papers asking the appellate court to hold that the city's appeal did not suspend Justice Ozzi's order. Thursday's ruling resolves that interim fight in the city's favor: per amNewYork, the appeal itself now waits until the two sides meet in Justice Ozzi's courtroom on August 31 — and in the meantime, the rollout continues.

Mastro's statement, per amNewYork: "It is a shame that the City can't own up to its own mistakes and admit that it has badly botched the rollout of this surcharge. Instead, the administration is doubling down, going to court to ensure that it can continue harassing and threatening New York City homeowners who clearly are permanent residents – something the City would know if it would only do its homework." City Hall did not immediately comment.

What actually changed — and what didn't

The rollout continues, now on solid legal footing. The ~900,000-record lookup list, the processing of the ~17,000 mailed notices, and the exemption pipeline all proceed. In practice the city never stopped — our August 12 check found the roll files posted and the deadline pages unchanged — but that posture rested on the city's own reading of its appeal. As of Thursday, an appellate order backs it, at least through August 31.
The tax itself was never in question here. The lawsuit challenges how the rollout was handled — the notices and the public list — not the statute. The surcharge is still law: for condos and co-ops it starts at a Department of Finance market value over $1 million, for 1–3 family homes over $5 million, and the first payment is still scheduled with the January 1, 2027 property-tax bill.
September 18 is unambiguous again. All week the open question was whether the restraining order reached the exemption deadline; press accounts differed and the city's site never blinked. With the rollout formally allowed to continue, there is no reading left under which waiting helps. If you received a notice — or think you should have — file by September 18.

What to watch next

The center of gravity moves back to Staten Island: on August 31, Justice Ozzi hears argument on whether the rollout should be paused while the case is litigated — the hearing his original order teed up. That decision, not this week's interim ruling, will set the rules for the fall. Beyond it, the constitutional challenge commentators keep predicting — a facial attack on taxing homes differently by residency status — remains unfiled. Our legal challenges tracker follows all of it, and this news desk and our 24/7 phone line are updated as each ruling lands.

Questions owners ask

Did the appeals court strike down the pied-à-terre tax?

No. The August 13 ruling is a narrow, interim one: it lets the city continue rolling out the tax while its appeal of the August 10 restraining order is heard, at least until the August 31 hearing. The tax statute itself was never struck, and no court has been asked to strike it — the pending lawsuit challenges how the rollout was handled, not the tax.

Is the September 18 exemption deadline back in force?

Treat it as fully live — and note it never verifiably went away. Whether the restraining order reached the deadline was disputed all week, the city's website displayed September 18 throughout, and with the appellate court now letting the rollout continue, there is no reading left under which waiting makes sense. File by September 18.

What happens on August 31?

The parties return to Justice Wayne Ozzi's courtroom in Staten Island for a hearing on whether the rollout should be paused while the homeowners' lawsuit is litigated. That hearing can extend the pause, end it, or reshape it — and this week's appellate ruling only governs the period until then.

Sources

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