A New York judge has blocked the implementation of Governor Kathy Hochul's "pied-à-terre" tax, which was designed to tax wealthy property owners with second homes. State Supreme Court Judge Wayne Ozzi ruled that the city of New York mishandled the tax's rollout by publishing a list of almost one million properties and their owners without properly determining who should face the levy, causing confusion and unnecessary hardship to homeowners who had to scramble to prove their primary residence within a tight deadline.

The tax remains technically legal but is now in limbo regarding collection. It would have imposed an annual surcharge on second homes worth over £5 million (single-family) or £1 million (condos/co-ops), with rates progressing to 1.3 per cent for homes worth over £25 million and 6.5 per cent for co-ops over £5 million. The scheme was projected to raise approximately £500 million annually and was championed by politician Zohran Mamdani as part of his "tax the rich" agenda. The city has appealed the ruling and invoked an auto stay to continue implementation, whilst critics argue the tax could drive wealthy residents and employers away from New York.