Judge Wayne Ozzi's ruling stems from a lawsuit filed in August. The judge ordered the city to take down a list of more than 900,000 properties potentially subject to the pied--terre tax and issue new notices to owners who may owe the surcharge.
The setback landed the same day a second lawsuit surfaced. Wynn Resorts founder Stephen Wynn and former U.S. Commerce Secretary Wilbur Ross teamed up to challenge the tax in a separate filing.
For owners of second homes across the city, the ruling means more uncertainty about whether, or when, they'll actually owe the surcharge. Redoing the notifications will take time and could delay any revenue the tax was meant to bring in.
Mamdani's signature tax policy is now tangled in two separate legal fights, one brought by property owners, and another backed by a billionaire casino magnate and a former cabinet secretary.