The rollout of New York’s pied-à-terre tax can proceed for now after an appeals court temporarily put a hold on a Staten Island judge’s order blocking the plan. A appeals court in Brooklyn on Thursday stayed the restraining order issued earlier in the week in a lawsuit filed by a group of homeowners pending further action on the city’s request to appeal the decision.

The tax, which targets luxury second homes in high-end towers along Billionaire's Row, had been temporarily blocked by a Staten Island judge. The appeals court’s intervention means the city can continue implementing the tax while the legal battle plays out.

The decision comes on August 13, 2026, and allows the city to move forward with collecting the tax from wealthy owners of pied-à-terre properties. The lawsuit was filed by homeowners who argue the tax is unconstitutional.

The city has argued the tax is necessary to address the housing crisis and raise revenue. The case now moves to the appellate division for further review.