The president of the United States, Donald Trump, has indicated that he is analyzing whether the federal government has any legal avenue to block the tax on high-value second homes in New York, a fiscal measure promoted by Mayor Zohran Mamdani and which, for now, remains provisionally suspended by a state court decision.
"I am investigating whether the federal government has any legal right to prevent this disaster, before it is too late, for the millions of people who appreciate New York and want to see it thrive, instead of becoming a dirty place, plagued by crime and decadent, the object of mockery and contempt," the occupant of the White House has stated through his social network.
In a message posted on Truth Social, Trump argues that the new New York tax on second homes "is costing the city and the state a fortune," since, in his opinion, the expected revenue is minimal compared to the tax contributions made by the tens of thousands of taxpayers "who flee the city never to return."
"Florida, Texas, and many other states are making a fortune!" he commented, while warning that this "dangerous political 'experiment'" in New York will end up destroying what he considers was once a great city and a great state.
"It is a true nonsense, and it is difficult, as president of the United States of America, to stand by and watch it happen, especially in a place I once loved," Trump has commented, who considers economic and subsequently social bankruptcy certain if the measure is maintained.
"And on top of that, the jihadists of the radical left are imposing congestion tolls. This does not work in the United States and must stop NOW!" he added.
The president's statements come after Wayne Ozzi, a state judge from Staten Island, issued a temporary restraining order on Monday that requires the Department of Finance to withdraw the tax registration of 960,000 properties released last month as part of the implementation of the tax on second homes. The order also prohibits the city from taking new enforcement actions related to the tax notifications already sent to 17,000 property owners.
Judge Ozzi's order will remain in effect, at least, until August 31, the date on which the parties are scheduled to return to court to review the case.
The tax on second homes in New York, operational since July 1, targets properties with a minimum value of 5 million dollars (4.3 million euros), as well as cooperatives and condominiums valued at at least 1 million dollars (865,000 euros), provided that the owner does not have their habitual residence there.
The state regulation establishes that it is the Department of Finance's responsibility to initially identify the taxpayers of the second home tax using available information, such as tax returns, property assessments, and other official records. However, the plaintiffs argue that, in practice, the obligation to prove what their primary residence is has been illegally shifted to the owners.
From the New York City Mayor's Office, it has been defended that this state tax on second homes targets ultra-wealthy non-residents and global elites who use the New York real estate market as a tool for wealth accumulation and not as housing, and it was estimated that it would generate 500 million dollars (433 million euros) annually.