President Donald Trump sharply criticized New York City's newly adopted pied-à-terre tax, revealing that his administration is investigating whether the federal government possesses legal authority to intervene in the surcharge on luxury second homes. The surcharge applies to owners of high-value properties used as part-time residences—a category city officials have targeted for years, though similar proposals have circulated at the state and local level without advancing until now.

In a Truth Social post on Tuesday, Trump argued that the levy could ultimately cost New York far more than it generates by incentivizing wealthy property owners and high-income taxpayers to relocate to lower-tax states such as Florida and Texas. The debate over whether tax burdens drive migration from high-cost states has intensified since the 2017 federal tax overhaul capped the deduction for state and local taxes at $10,000, which increased the effective tax burden on residents of high-tax jurisdictions.

"The NYC Pied-a-Terre Tax is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return," Trump wrote.

He noted that Florida, Texas, and other states are reaping financial benefits from the outflow of New York residents, characterizing the policy as a dangerous political "experiment."

The president raised the possibility of federal action, writing: "I am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late, for the millions of people who cherish New York and want to see it thrive, as opposed to becoming a filthy, crime ridden, decrepit place of mockery and scorn."

Trump did not specify what federal law or executive authority his administration might invoke to challenge the city-level tax. Under the U.S. constitutional framework, states and municipalities generally possess broad authority to levy taxes within their own jurisdictions, and successful federal challenges to local tax measures are relatively uncommon. The White House did not immediately respond to a request from FOX Business for additional details about the potential federal action under consideration.

Trump's remarks followed a ruling one day earlier by Staten Island Supreme Court Justice Wayne Ozzi, who temporarily restrained Mayor Zohran Mamdani's administration from proceeding with portions of the tax rollout. The order came after three homeowners filed a lawsuit contesting how the city implemented the surcharge.

Justice Ozzi directed the city to remove a disputed property roll covering more than 900,000 homeowners and temporarily prohibited officials from imposing or collecting the surcharge based on that roll without first making individualized determinations and providing the notice required under state tax law. The lawsuit targets the administration of the tax rather than the legality of the surcharge itself.

"We disagree with today's ruling, but we are confident in both the pied-à-terre surcharge and the City's ability to implement it fairly and effectively," Mamdani spokesman Matt Rauschenbach said following the ruling.

"This surcharge asks those who own second homes valued at $5 million or more to contribute their fair share to the city they benefit from," Rauschenbach added.

Mamdani has stated that approximately 17,000 homeowners in a city of 8.5 million residents are potentially affected by the surcharge.

The Mamdani administration did not immediately respond to a request for comment from FOX Business regarding Trump's criticism or his assertion that the surcharge could drive wealthy taxpayers and property owners out of New York.

Trump also drew a connection between the surcharge and New York City's congestion pricing program, writing: "Financial, and then Social, RUIN, is a 100% certainty - And then the Radical Left Jihadists charge Congestion Pricing on top of everything else."

Governor Kathy Hochul's office did not immediately respond to a request from FOX Business for comment on Trump's criticism of the surcharge or the prospect of federal intervention.

Whether the surcharge will ultimately cause substantial numbers of property owners or taxpayers to depart New York remains uncertain. The legal dispute over the rollout continues as Mamdani defends the surcharge and the Trump administration explores whether a federal avenue for intervention exists.