Markets 
President Donald Trump blasted New York City’s new pied-à-terre tax and said his administration is examining whether the federal government has legal authority to intervene, escalating a fight over a surcharge targeting luxury second homes.
Trump argued in a Truth Social post Tuesday that the tax could ultimately cost New York more than it raises by encouraging wealthy property owners and taxpayers to leave for lower-tax states such as Florida and Texas.
“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 to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return,” Trump wrote.
He added that Florida, Texas and other states are benefiting financially from people leaving New York and called the policy a dangerous political “experiment.”
NEW YORK’S WEALTHY RUSH TO AVOID MAMDANI’S SECOND-HOME TAX
The president also raised the prospect of federal action.
“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, as opposed to becoming a filthy, crime ridden, decrepit place of mockery and scorn,” Trump wrote.
Trump did not identify what federal law or executive authority his administration could potentially use to challenge the city tax.
The White House did not immediately respond to FOX Business’ request for additional details about what federal authority or action the Trump administration is considering.
MAMDANI’S TAX ROLL BLUNDER WILL BACKFIRE ON EVERYDAY NEW YORKERS AS BUYERS HEAD SOUTH, DEVELOPER WARNS
Trump’s comments come one day after a New York judge temporarily restrained Mayor Zohran Mamdani’s administration from moving forward with parts of the tax rollout after three homeowners sued over how the city implemented the surcharge.
Staten Island Supreme Court Justice Wayne Ozzi ordered the city to take down a disputed property roll covering more than 900,000 homeowners and temporarily barred officials from imposing or collecting the surcharge based on the roll without first making the individualized determination and providing the notice required under state tax law.
The lawsuit challenges the administration of the tax rather than the legality of the surcharge itself.
“We disagree with today’s ruling, but we are confident in both the pied-à-terre surcharge and the City’s ability to implement it fairly and effectively,” Mamdani spokesman Matt Rauschenbach said following the ruling.
MAMDANI EXTENDS DEADLINE FOR NYC HOMEOWNERS TO SEEK EXEMPTION FROM NEW PIED-À-TERRE TAX
“This surcharge asks those who own second homes valued at $5 million or more to contribute their fair share to the city they benefit from,” he added.
Mamdani has said about 17,000 homeowners in a city of 8.5 million are potentially affected by the surcharge.
The Mamdani administration did not immediately respond to FOX Business’ request for comment on Trump’s criticism and his argument that the surcharge could drive wealthy taxpayers and property owners out of New York.
Trump also linked the surcharge to New York City’s congestion pricing program.
“Financial, and then Social, RUIN, is a 100% certainty – And then the Radical Left Jihadists charge Congestion Pricing on top of everything else,” Trump wrote.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Whether the surcharge ultimately causes significant numbers of property owners or taxpayers to leave New York remains unclear.
Gov. Kathy Hochul’s office did not immediately respond to FOX Business’ request for comment on Trump’s criticism of the surcharge or the possibility of federal intervention.
The legal fight over the rollout is continuing as the Mamdani defends the surcharge and Trump considers whether the federal government has an avenue to intervene.
Read the full article here
