A judge has issued a temporary restraining order blocking implementation of New York City's proposed surcharge on non-primary residences, marking a setback for Mayor Zohran Mamdani's revenue initiative.
The policy would have imposed additional taxes on property owners who maintain homes in the city but do not live in them full-time. The measure targets high-value properties, including single-family homes valued above $5 million and condominium or cooperative units worth $1 million or more.
The legal challenge emerged after homeowners filed suit against the tax last week, arguing the surcharge was improperly implemented. The restraining order prevents the city from enforcing the policy while litigation proceeds.
City officials have announced plans to appeal the judicial decision, signaling their intent to defend the tax in court. The measure was part of the administration's broader effort to generate revenue and address housing affordability concerns in the city, though supporters and opponents continue to dispute its merits and legal foundations.
The case is expected to proceed through the court system in coming weeks.
Reporting based on Guardian US.
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