A New York appeals court has allowed Mayor Zohran Mamdani’s proposed surcharge on luxury second homes to proceed for now, overturning a temporary block obtained by homeowners. The decision revives a contentious policy that could affect owners of high-value pied-à-terre properties and leaves the wider legal challenge unresolved.

The tax had been paused after a lower-court ruling, prompting the Mamdani administration to appeal. The appellate decision does not settle the underlying constitutional and legal arguments, but permits the city to continue its rollout while the case continues.