A New York state appeals court ruled Wednesday that New York City Democratic Mayor Zohran Mamdani can move forward with a controversial tax on high-end second homes. 

The Brooklyn-based court reversed a September ruling by a state Supreme Court judge, who found the city mishandled the tax's rollout and ordered officials to remove the current list of property owners to whom the tax won't apply and replace it with one listing only those who will be subject to the tax.

Mamdani supported the new pied-à-terre tax, which was proposed by New York Democratic Gov. Kathy Hochul, earlier this year. The tax was expected to bring in approximately $500 million for the city annually.

The appeals court ruled the homeowners who brought the suit, who used to have homes in New York City, had no legal stake in the outcome and therefore, the mayor's tax could move forward, according to the New York Daily News.

“Today, an appeals court rejected an attempt by the ultrawealthy to avoid paying their fair share and ruled in favor of the City in a lawsuit challenging the rollout of the pied-a-terre surcharge," Mamdani said in a statement. "From day one, those with the most have attempted to use every legal avenue available to shield their wealth and avoid contributing more to our city. But owning a second home worth over $5 million should come with a responsibility to the city that makes it valuable.

“The pied-a-terre surcharge asks those who can afford luxury second homes to contribute toward the safer streets, cleaner parks and essential public services that every New Yorker deserves," he added.

The homeowners and their attorneys have not commented on the ruling so far.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.