New York City Mayor Mamdani has confirmed his intention to move forward with implementing a new pied-à-terre tax despite a recent court ruling challenging the city’s approach. The tax targets owners of luxury second homes in the city.

The controversy stems from a decision issued Tuesday by Justice Wayne Ozzi of the Staten Island Supreme Court. Ozzi ruled that the city must restart the notification process informing homeowners subject to the surcharge, describing the initial rollout as “arbitrary” and “capricious.” The judge’s order effectively requires City Hall to revise its procedures before moving forward with enforcement, potentially delaying the timeline for owners to appeal.

At a separate event in Brooklyn on Wednesday, Mayor Mamdani dismissed the court’s decision and affirmed the city’s commitment to the tax. “I fully believe that this law is constitutional,” he said, emphasizing plans to intervene in ongoing lawsuits and collaborate with state officials in Albany to defend the surcharge.

City Hall has announced it will appeal the ruling, signaling its intent to keep the tax implementation on track. The current deadline for homeowners to challenge the notices is Tuesday, but should the court’s order stand, that timeline would be extended to accommodate the revised process.

The pied-à-terre tax is part of an effort to generate additional revenue by targeting owners of expensive secondary residences in New York City. Proponents argue it will help address housing affordability by discouraging the accumulation of vacant luxury units, while opponents have raised concerns about its legal and administrative validity.

The dispute highlights the ongoing tension between city officials’ policy ambitions and judicial oversight on procedural grounds. How the appeals court will ultimately rule remains to be seen, but for now the city is pressing ahead with plans to defend and implement the tax.