President Donald Trump said Tuesday that his administration is examining whether the federal government can challenge New York City Mayor Zohran Mamdani’s new pied-à-terre tax on luxury second homes, calling the levy a “dangerous political ‘experiment’” that could damage the city.
Trump Targets Mamdani’s Luxury Home Tax
“I am looking to see if the Federal Government has any legal right to avert this disaster,” Trump wrote on Truth Social. The tax, enacted through New York’s state budget, is expected to raise about $500 million annually.
The surcharge applies to non-primary residences. Through fiscal 2028, houses worth $5 million to $15 million face a 0.8% surcharge, rising to 1.3% above $25 million, while condos and co-ops face higher temporary rates because city assessments understate market values.
Court Pause Fuels Backlash Over Rollout
The rollout has hit resistance. A Staten Island judge temporarily blocked implementation after homeowners sued. Mamdani said City Hall would “vigorously defend” the policy. “We are confident in our position,” he said Monday, arguing it would help fund “safer streets” and “stronger schools.”
Mamdani has framed the tax as fulfillment of his promise to “tax the rich.” The city sent notices to about 17,000 homeowners and extended the appeals deadline to Sept. 18 after complaints about potentially misidentified primary residences.
Benzinga reached out to the New York City Mayor’s Office for comment on Trump’s social media post but did not receive an immediate response.
Business figures have also pushed back. Billionaires Ken Griffin, Bill Ackman and Kevin O’Leary criticized the tax before passage. Griffin called Mamdani’s campaign video outside his $238 million penthouse “creepy and weird.” Citadel warning that it could reconsider a $6 billion Park Avenue project, while Ackman argued the levy could lower property values and tax receipts. O’Leary separately called the proposal “really stupid.”
Tax Fight Deepens Trump-Mamdani Political Feud
The clash adds another front to Trump and Mamdani’s uneasy relationship. During the 2025 mayoral campaign, Trump threatened to strip federal funding from New York if Mamdani won, while Mamdani pledged to resist Trump’s immigration crackdown. Benzinga previously detailed the looming fight over federal funding, immigration enforcement and New York’s sanctuary policies.
At their February White House meeting, Mamdani pressed Trump over ICE detentions and handed officials names of four pro-Palestinian students facing deportation attempts, while both discussed housing affordability. Mamdani has also criticized Trump’s Iran war policies.
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