Former Deputy Mayor Sued New York's Pied-à-Terre Tax Rollout. The City Froze the Judge's Pause Within Hours.
New York Real Estate Practice Group Leader Stuart Saft was cited in Fortune about the status of New York City's rollout of its new pied-à-terre tax after former First Deputy Mayor Randy Mastro won a temporary court order blocking implementation before the city quickly appealed and stayed the ruling. Mastro's lawsuit alleges the Department of Finance failed to follow statutory requirements, improperly shifted the burden of proof onto homeowners and unlawfully published property owner information. Stuart said the rollout demonstrated flaws in the legislation itself, criticizing both the government's implementation of the surcharge and the law's underlying structure, which he argued affects many full-time New York residents rather than the wealthy nonresidents it was intended to target.
"This isn't the tax that's going after billionaires who don't pay taxes to New York," he commented. "This is going after New York residents, full-time residents who file New York State and New York City tax returns and pay New York taxes."