Court lifts temporary block on tax collection
The Appellate Division in Brooklyn has stayed a Sept. 29 Staten Island Supreme Court ruling that temporarily blocked New York City from enforcing the pied-à-terre tax, according to reporting by The Real Deal. The stay allows the Department of Finance to continue issuing bills and collecting the surcharge on non-primary residences while the city's appeal is pending.
The appellate court indicated it will issue a decision by Nov. 10, setting a firm timeline for resolution of the legal challenge. The Staten Island ruling had granted a preliminary injunction in a lawsuit brought by property owners challenging the tax's constitutionality.
For owners who received bills in July or August, the stay means the city can proceed with collection efforts. The Department of Finance has not publicly announced whether it will resume enforcement actions that may have paused after the lower-court order.
What the stay means for property owners
Owners who filed exemption applications by the Oct. 13 deadline—extended from Oct. 6 by the Department of Finance—remain in the queue for review. The stay does not affect exemption processing or the validity of applications already submitted.
An owner of a $3 million condominium designated as a pied-à-terre faces an annual surcharge of roughly $12,000 under the tax's tiered rate structure. If that owner filed an exemption claim asserting primary residence, the stay leaves both the underlying tax and the exemption review in place while the appellate court considers the broader legal question.
Owners who did not file by Oct. 13 and believe they qualify for an exemption can still submit a late application, though DOF rules impose a higher burden of proof and potential penalties for late filings.
Timeline and next steps
The Nov. 10 deadline set by the Appellate Division will determine whether the tax continues in its current form or faces a renewed injunction. A ruling in the city's favor would clear the way for full enforcement; a decision for the plaintiffs could reinstate the block and force the city to halt collection pending further appeals.
The city has not disclosed how much revenue it has collected since the tax took effect July 1. Comptroller estimates published earlier this year projected annual revenues between $200 million and $500 million, depending on exemption rates and owner behavior.
Property owners uncertain whether their unit is subject to the surcharge can check their address and review exemption criteria using the free tool at piedaterretax.nyc.
Frequently asked questions
Can New York City still collect the pied-à-terre tax after the Staten Island court blocked it?
Yes. The Appellate Division in Brooklyn stayed the Sept. 29 Staten Island injunction, allowing the Department of Finance to continue issuing bills and collecting the surcharge while the city's appeal is pending. The appellate court will issue a decision by Nov. 10.
What happens to my exemption application now that the injunction was lifted?
The stay does not affect exemption processing or the validity of applications already submitted. Owners who filed by the Oct. 13 deadline remain in the queue for review while the appellate court considers the broader legal challenge.
How much is the pied-à-terre tax on a $3 million condo?
An owner of a $3 million condominium designated as a pied-à-terre faces an annual surcharge of roughly $12,000 under the tax's tiered rate structure.