New Delhi, Aug. 8 -- New York City is facing a lawsuit from a group of homeowners seeking to delay the rollout of Mayor Zohran Mamdani's new pied-a-terre tax, arguing that the city's publication of a list of potentially affected properties has created "mass confusion" and subjected homeowners to unwarranted scrutiny of their personal information.

According to Bloomberg, the lawsuit was filed Friday in New York state court in Staten Island on behalf of three homeowners. The legal challenge does not seek to overturn the tax itself. Instead, it targets the city's assessment roll and notices sent to property owners who may be liable for the surcharge.

The homeowners argue that the city has improperly shifted the burden onto residents to pro...