On Oct. 28, residents and elected officials gathered with tiny violins outside a court in Downtown Brooklyn as the New York Supreme Court of Appeals heard arguments regarding the pied-à-terre tax – an annual surcharge on luxury, non-primary residential properties.
Their goal was to make a statement, saying “Cry Me A River,” to those hearing arguments against the policy. Jen Gaboury, first vice president of the Professional Staff Congress at CUNY, called the court meeting a tactic to “kick up sand and delay implementation on bringing in revenue.
In April, Mayor Zohran Mamdani announced the tax outside of a luxury penthouse, calling out hedge fund CEO Ken Griffin. “Today, we’re taxing the rich,” Mamdani said in the video.
Although the tax has already been signed into law at a state level, ABC7 reported that a State Island judge ordered the city to restart its process in determining who must pay the tax, arguing that it was not done with proper accuracy.
The city has filed an appeal, and questions remain as to whether the city will be able to execute the oversight before tax bills are issued in November.
According to Assemblymember Emily Gallagher, representing neighborhoods in North Brooklyn, New York City has some of the highest rates of inequality in the country.
“This lawsuit is a bad faith attempt to block a step towards a truly equitable tax structure,” Gallagher said.
Although many New Yorkers were upset at the notice of the tax, many policy experts welcomed the policy, according to The Guardian.
“Our movement – to make the ultra-rich pay what they owe in taxes to fund programs to address the affordability crisis – is winning,” said Brahvan Ranga, campaign manager with Invest in Our New York.
“The ultra-rich are throwing a temper tantrum to preserve their profits at the expense of the rest of us,” Ranga said.
According to a press release from Citizen Action NYC, the tax is expected to raise $500 million for the city to support affordability agendas. While the money is a step in the right direction, advocates said, there is much work left to be done, as New York City Comptroller Mark Levine has predicted an $8.8 Budget Gap in FY 2028.
“The pied-à-terre tax takes a modest but important step to get New York City’s ultra-weather to pay their fair share,” Gaboury said.
