Trump Urges Immediate Halt to New York's Pied-a-Terre Tax

On Tuesday, August 11, 2026, President Donald Trump criticized New York City's new "temporary residence tax" and said he was studying whether the federal government has the legal authority to block the policy. The tax, which targets non-primary residences, was pushed by Mayor Zoran Mandani and approved by the New York State legislature in late May. The day before, a Staten Island judge temporarily blocked the policy's implementation, and the city government promptly filed a motion to appeal, which put the judge's order on hold. Mandani's office did not respond to Trump's threat, but the mayor's office said at a Monday press conference that it would "actively defend the city's position in court."

The tax plan imposes a surcharge on secondary residences valued at more than $5 million. The lawsuit alleges that the actions are "arbitrary and capricious" in shifting the burden of proof onto residents. On Monday, Judge Wayne Oates temporarily blocked the city from taking further action on lists and notices. Hours later, city lawyers said they would file a motion for leave to appeal, triggering an automatic stay on all procedures to enforce Oates' order.

Trump also said the policy has prompted thousands of people to move to areas with more favorable tax regimes, offsetting tax revenue. However, it is not confirmed whether Trump or his family are affected by the tax. Earlier, some business figures expressed concerns about the tax policy, but subsequent actions have not been confirmed. Studies on whether high tax rates cause an exodus of the wealthy have yielded conflicting conclusions.