President Trump on Tuesday escalated his criticism of New York City Mayor Zohran Mamdani's proposed "pied-à-terre" tax, labeling it a "dangerous political 'experiment'" in a post on Truth Social. The tax, which would impose an annual levy on second homes valued at more than $5 million, has become a flashpoint in the city's budget fight.
Trump's remarks came hours after a Staten Island judge issued a temporary halt to the tax's implementation, also ordering the city to remove a public list of over 900,000 properties that would have been subject to the levy. The judge, Wayne Ozzi, a Democrat on the state's Supreme Court, acted in response to a lawsuit filed by a group of homeowners challenging the measure.
In his post, Trump argued that the tax would backfire economically. "The NYC Pied-a-Terre Tax is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return," he wrote.
The tax was first proposed in April by Governor Kathy Hochul and Mayor Mamdani as a way to help close the city's roughly $12 billion budget gap. At the time, Mamdani framed it as a fairness measure targeting the "ultra-wealthy and global elites" who own property in New York but live elsewhere. "If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker," Hochul said in April.
The proposed annual tax would apply to one-to-three-family homes, condominiums, and co-ops valued above $5 million, but only for owners whose primary residence is outside the city. Supporters argue it would generate significant revenue from those who use the city's services without paying their fair share.
Monday's ruling by Judge Ozzi not only paused the tax but also barred the city from taking further action on letters sent to roughly 17,000 property owners about the impending levy. The judge's decision was a victory for the homeowners' lawsuit, which argued that the tax was legally flawed and unfairly targeted non-residents.
Trump, who has frequently clashed with city Democratic leaders, suggested the federal government might intervene. "This doesn't work in America, and must be stopped, NOW! I am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late, for the millions of people who cherish New York and want to see it thrive," he added.
The president's intervention adds a new layer of political tension to an already contentious local policy debate. His comments also echo broader Republican arguments that progressive taxes on wealth and property drive away high-income residents and harm economic growth. The legal battle is likely to continue, with the city expected to appeal the judge's ruling.
Mamdani's office did not immediately respond to a request for comment. The mayor has defended the tax as necessary to fund essential services and reduce inequality, but critics, including Trump, see it as a punitive measure that could accelerate the exodus of wealthy taxpayers from the city.
As the case moves forward, the fate of the pied-à-terre tax remains uncertain. The judge's temporary block gives opponents time to press their case, while Trump's remarks signal that the issue could become a talking point in national politics. For now, New York City's budget planners must wait to see whether this "experiment" will survive legal scrutiny.
