President Donald Trump on Tuesday condemned New York City's new pied-à-terre tax, saying he is exploring the federal government's legal options to stop the policy. Trump called the tax, which targets nonprimary residences valued over $5 million, a "disaster" that "must be stopped, NOW" in a post on Truth Social.
Trump's comments followed a Staten Island judge's temporary block of the tax a day earlier. New York City quickly filed a motion to appeal that order, effectively placing the judge's ruling on hold.
The tax, passed by the New York State legislature in late May, was a key initiative for Mayor Zohran Mamdani. Mamdani's office did not comment on Trump's threat of a federal challenge.
Mamdani had previously said he was confident in the city's legal position. At a Monday press conference, he said the city would "vigorously defend our city's position in court."
Mamdani said the tax would fund "safer streets," "stronger schools" and other city services, describing the surcharge as crucial for New Yorkers.
Trump, a native New Yorker who moved his primary residence to Florida in 2019, called the tax a "dangerous political experiment" and said it "will destroy what was once a great City and State."
Trump said it is difficult for him to watch the situation unfold in a place he "once loved." Whether Trump or his immediate family would be subject to the tax is unclear.
He also claimed the levy is pushing thousands of people toward lower-tax states, which he argued would wipe out any revenue the policy generates. Trump said the tax is costing New York "a fortune" by driving residents to Florida and Texas.
That argument echoes warnings that surfaced after Mamdani's election. The democratic socialist mayor had pledged to raise taxes on the city's wealthiest residents.
Citadel CEO Ken Griffin, for example, previously threatened to relocate his business to Miami after Mamdani put forward the pied-à-terre tax. Griffin also suggested his company was reconsidering a significant redevelopment project on Park Avenue in Manhattan.
Vornado CEO Steven Roth later said on an earnings call that Griffin was not abandoning his plans for the New York City building. The broader economic impact of such taxes remains contested: some studies show a decline in New York's millionaire population, while others dispute the notion of a widespread exodus driven by state taxes.
