Wynn and Ross sue New York over luxury second-home tax
Casino developer Steve Wynn and former US commerce secretary Wilbur Ross have challenged New York’s pied-à-terre tax, arguing that it unfairly targets owners whose primary residences are outside the state. The surcharge applies to qualifying New York City second homes and is projected to raise $500m annually.
Casino developer Steve Wynn and former US commerce secretary Wilbur Ross have sued New York state over a tax on high-value second homes in New York City. The lawsuit, filed on Long Island, argues that the so-called pied-à-terre tax is unconstitutional because it discriminates against people who do not primarily live in the state. Both men are Florida residents and own properties in New York City.
Ross could face a bill of more than $83,000 for his Manhattan co-op, while Wynn could owe more than $183,000 for his city property, according to the case. The lawsuit says second-home owners already pay substantial property taxes and contribute to the city’s charitable and cultural institutions. The surcharge applies to one-, two- and three-family homes valued above $5m, as well as condos and co-ops valued at $1m or more, when the property is not the owner’s primary residence.
It is expected to raise $500m a year for New York City. A spokesperson for Governor Kathy Hochul said the lawsuit strengthened the case for requiring wealthy owners of multimillion-dollar second homes to pay their fair share. The tax is also facing a separate challenge from homeowners who say the city failed to do enough to determine who should pay.
A judge ordered officials to restart the process with greater due diligence. The city said it would seek a stay while pursuing an appeal. Mayor Zohran Mamdani’s spokesperson, Matt Rauschenbach, said the city would continue implementing the surcharge fairly and in compliance with the law.
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