President Trump called New York City's pied-à-terre tax a "dangerous political experiment" and said he is exploring federal intervention to block the levy, which Mayor Zohran Mamdani pushed through the state legislature in late May.
President Donald Trump on Tuesday called New York City's pied-à-terre tax a "dangerous political 'experiment'" and said he is exploring whether the federal government "has any legal right to avert this disaster, before it is too late," escalating his public opposition to a policy championed by Mayor Zohran Mamdani.
The tax, which targets nonprimary residences owned by wealthy buyers, was passed by the New York State legislature in late May. In a Truth Social post, Trump wrote that the levy "doesn't work in America, and must be stopped, NOW!"
Trump's statement came one day after a Staten Island judge temporarily blocked the policy. Judge Wayne Ozzi issued an order preventing the city from "taking any further action" related to a publicly distributed list of homeowners and written notices mailed to 17,000 people who may be subject to the tax.
Hours after Ozzi's ruling, an attorney for Mamdani filed notice that the city would seek permission to appeal, which under New York procedure triggered an automatic stay of all proceedings to enforce the judge's order.
Mamdani's office did not respond to a request for comment on Trump's threat. The mayor's office instead referred to remarks Mamdani made at a Monday press conference, in which he said, "We look forward to vigorously defend our city's position in court." Mamdani added: "We are confident in our position. And that is a confidence coming from both the legality of the City's actions as well as the importance of a surcharge on secondary homes worth more than $5 million, a surcharge that will help fund safer streets, that will help fund stronger schools, and it will help fund the city that New Yorkers deserve."
The policy, backed by Mamdani and New York Gov. Kathy Hochul, raises taxes on second properties valued at $1 million or more, with higher-valued residences facing steeper rates. Mamdani announced on Tax Day that the measure is projected to raise $500 million in annual revenue, though NYC Comptroller Mark Levine subsequently estimated the figure could fall to between $340 million and $380 million.
Trump, a native New Yorker who moved his primary residence from Manhattan's Trump Tower to his Mar-a-Lago golf club in Florida in 2019, said in his post that it is hard for him as president "to sit back and watch it happen, especially to a place I once loved." It is unclear whether Trump or members of his immediate family would be subject to the tax.
The president also asserted that the tax is driving thousands of residents to relocate to lower-tax states, potentially erasing whatever revenue the policy generates — a claim that echoes warnings made by prominent business figures since Mamdani's election.
Citadel CEO Ken Griffin threatened to move his firm to Miami after Mamdani announced the tax in a video that featured Griffin's ultraluxury Manhattan penthouse. Griffin also indicated Citadel was reconsidering a planned redevelopment of a Park Avenue building. Vornado CEO Steven Roth, however, said during a recent earnings call that Griffin had not abandoned his New York building plans.
Separately, last week three NYC residents filed a lawsuit in New York Supreme Court challenging the city's distribution of a list disclosing the names, addresses, and property values of hundreds of thousands of homeowners. That suit argues the city "arbitrarily and capriciously" placed the burden of proving non-applicability on residents rather than first determining which properties qualify.
With litigation proceeding on multiple tracks and Trump now signaling a potential federal challenge, the policy faces a complicated legal path — even as Mamdani's administration insists it will prevail in court.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
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