What the lawsuit challenged
The litigation filed in Richmond County Supreme Court targets the City's implementation of the non-primary-residence surcharge—not the validity of Tax Law Article 30-C itself. Plaintiffs challenged DOF's publication of a supplemental property roll identifying roughly 17,000 units potentially subject to the surcharge, the notices mailed to those owners, and whether the City made the required residency determination before acting. The suit also contested the procedure requiring owners to apply for an exemption to avoid the surcharge and the legal sufficiency of the notices and rollout steps.
The challenge was procedural. It did not seek to repeal the statute or invalidate the surcharge rates enacted by Albany in May 2026.
August 10 TRO and August 13 appellate order
On August 10, 2026, Justice Wayne Ozzi issued a temporary restraining order directing the City to remove the supplemental roll from the DOF website, prevent public access to it, take no further action based on the roll or mailed notices, and refrain from enforcing the then-announced September 18, 2026 exemption-application deadline. The TRO was an interim procedural order, not a final ruling on the statute or the surcharge liability.
Three days later, on August 13, 2026, an Appellate Division, Second Department justice stayed the August 10 TRO while the appellate court considered the City's challenge. The practical effect was to permit DOF to resume the rollout—maintaining the roll, proceeding with notices and exemption processing, and continuing implementation while the litigation proceeded. The appellate action did not finally decide whether the plaintiffs' claims will prevail.
What is pending and what is operative
The underlying case remains unresolved. The plaintiffs' claims concerning the City's rollout process remain pending, while the August 13 stay leaves the City's implementation operative for now. There is no final judgment invalidating the surcharge, no final injunction against the City, and no final appellate decision upholding the rollout.
The August 10 TRO is not the current operative position. The August 13 appellate stay is. DOF extended the exemption-application deadline from September 18 to October 13, 2026; that deadline has passed. The surcharge applies under Tax Law Article 30-C to qualifying non-primary residences. For condos and co-ops, the threshold is market value above $1 million; for houses and one-to-three-family properties, the threshold is market value above $5 million. Phase 1 rates for condos and co-ops are 4 percent on market value between $1 million and $3 million, 5.25 percent on market value between $3 million and $5 million, and 6.5 percent on market value at or above $5 million. Phase 1 rates for houses are 0.8 percent on market value between $5 million and $15 million, 1.05 percent on market value between $15 million and $25 million, and 1.3 percent on market value at or above $25 million.
One owner's arithmetic
A Manhattan condo owner holds a unit with a DOF market value of $2.1 million on the July 2026 Supplemental Market Value Roll. The unit is not the owner's primary residence and does not qualify for the family-member or tenant exemption. The Phase 1 surcharge is 4 percent of the full market value—$84,000 annually. The owner received a DOF notice in August 2026 and did not file an exemption application by the October 13 deadline. The first payment is due January 1, 2027.
The owner's regular property tax bill is unaffected. The surcharge is a separate annual charge. It does not offset abatements or exemptions that apply to the regular tax. If the owner sells the unit or converts it to a primary residence before the next taxable status date—January 5, 2027—the surcharge for fiscal year 2027–28 would not apply, but the fiscal year 2026–27 charge remains due.
What the data show
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows that roughly 24,000 units citywide would owe the surcharge if they are non-primary residences. Most are primary residences and owe nothing. These are exposure figures, not a forecast of what the city will collect.
In Manhattan, 16,709 condo and co-op units fall above the $1 million threshold; the median surcharge for those units would be $53,665 if they are non-primary. In Brooklyn, 3,311 houses fall above the $5 million threshold; the median surcharge would be $47,744. The top exposure ZIP codes for condos and co-ops are 10019 (975 units), 10012 (932 units), and 10013 (1,751 units). An additional 4,400 condo and co-op units citywide have market values within $100,000 of the $1 million threshold.
What to watch
The Richmond County case remains pending. No final judgment has been entered. The City's rollout continues under the August 13 appellate stay. Owners who disagree with DOF's market-value determination may file an appeal with the NYC Tax Commission; the deadline depends on the notice and appeal procedure applicable to the property.
Conquest's free DOF market-value and surcharge checker shows whether a specific property falls above the threshold and calculates the Phase 1 surcharge if the unit is non-primary. The tool uses the same July 2026 Supplemental Market Value Roll that DOF used to mail notices. It is not legal or tax advice.
Frequently asked questions
Is the pied-à-terre tax still in effect after the August court ruling?
Yes, the surcharge is currently in effect. An August 13, 2026 appellate order stayed the earlier temporary restraining order, allowing the City to continue implementing the non-primary-residence surcharge while the lawsuit proceeds. No final judgment has invalidated the surcharge.
How much is the pied-à-terre tax on a $2 million Manhattan condo?
For a condo with a DOF market value of $2 million that is not a primary residence, the Phase 1 surcharge is 4 percent of the full market value, or $80,000 annually. The surcharge applies to condo and co-op market values above $1 million at rates of 4 percent ($1–3 million), 5.25 percent ($3–5 million), and 6.5 percent ($5 million and above).
Does the lawsuit change whether I have to pay the NYC second-home tax?
No, the lawsuit does not currently change payment obligations. The August 13 appellate stay permits DOF to proceed with implementation, the October 13, 2026 exemption-application deadline has passed, and the first surcharge payment is due January 1, 2027 for qualifying non-primary residences.