Judge Ordered NYC to Scrap Property Tax List
Owners of high-value homes and non-primary residences may see tax notices paused following a court ruling.
Updated on Sept. 29, 2026 in Taxes
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A judge has ordered New York City to remove a property list of over 900,000 homes and reissue tax notices after finding the city failed to use existing information. The ruling affects owners of high-value properties who received tax notices in July.
Why it matters
The court ruling addresses how the city enforces a tax on one- to three-family homes valued at $5 million or more and condos or co-ops worth $1 million or more when they are not a primary residence. It highlights concerns over the city shifting the burden of proof for tax exemptions onto individual property owners.
The city flagged 900,000 properties for potential taxation, and 17,000 owners received specific notices in July. It remains unclear how many owners will remain subject to the tax once a new list is prepared.
The players
Wayne Ozzi
The judge who ruled against the city's property tax notification process.
Kathy Hochul
The Governor of New York who signed the state budget containing the tax law.
Steve Wynn
A property owner who filed a lawsuit challenging the tax's constitutionality.
Wilbur Ross
A property owner who joined the lawsuit challenging the tax.
The details
Judge Wayne Ozzi ruled that the Department of Finance must stop using its current list and reissue notices based on a narrower, individualized review. The city had previously sent 17,000 notices to addresses, only for many owners to be found exempt upon review. The implementation of this tax law, which was included in the state budget signed by Governor Kathy Hochul, is currently in flux.
Timeline
The Department of Finance sent 17,000 notices to property owners in July 2026.
Judge Ozzi issued the order to scrap the property list on September 29, 2026.
Money Landscape
This development marks a departure from the city's planned tax enforcement under the state budget signed by Governor Kathy Hochul. Implementation of the tax remains in flux while the city prepares new notices and pursues an appeal.
Property owners who received tax notices in July should monitor their mail for revised communications from the city. Consider speaking with a qualified tax professional to evaluate whether your property qualifies for an exemption based on your residency status or valuation.
The takeaway
The court has halted the city's current tax notification process, signaling that the rules may be refined before new notices arrive. Property owners should keep all documentation related to their home valuation and primary residency status in case a new review is required.
Further reading
For more information on local fiscal policies, see Taxes.
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