Casino mogul and former Trump secretary join forces to take on NYC's pied-à-terre tax
New York City’s tax on luxury second homes has its latest moneyed opposition: casino mogul Steve Wynn and former Trump administration secretary Wilbur Ross
NEW YORK -- New York City's tax on luxury second homes has its latest moneyed opposition: casino mogul Steve Wynn and former Trump administration secretary Wilbur Ross.
The pair of wealthy part-time New Yorkers sued the state on Monday over the so-called pied-à-terre tax, arguing the surcharge is unconstitutional because it discriminates against people who don't primarily live in the state.
According to the case, both men are residents of Florida but are staring down massive bills under the tax, which is meant to raise revenue from wealthy people who own ritzy pads in the Big Apple but don't pay local income taxes because they live most of the year elsewhere.
Ross, an investor who was commerce secretary during President Donald Trump's first term, could be on the hook for more than $83,000 for his co-op in Manhattan. And Wynn, developer of a luxury casino empire, is facing a possible charge of over $183,000 for his place in the city.
The lawsuit, which was filed against the state in a court on Long Island, also argues that people who own pied-à-terres already fork over serious coin on property tax here and, because they are wealthy, make major contributions to the city's charitable and cultural institutions “for the benefit of all New Yorkers.”
In a statement, a spokesperson for Gov. Kathy Hochul said “When Steve Wynn and Wilbur Ross try to cast themselves as sympathetic figures in a fight over paying their fair share on multimillion-dollar second homes, they’re making the case for the pied-à-terre tax as well as anyone could."
Getting the surcharge into state law was a major boon for New York City Mayor Zohran Mamdani in his quest to raise taxes on the rich to help pay for his progressive agenda in the city. But implementing it has so far been a bumpy ride.
The city is already facing an earlier lawsuit over its rollout of the tax from a group of homeowners who contend that City Hall didn't do enough to determine who would pay the tax and instead put the onus on homeowners to figure it out.
A judge on Tuesday ruled against the city and ordered officials to restart the process with a little more due diligence. The city plans to ask the court to pause the ruling while it continues to fight the case through the appeals process.
“Today’s decision is wrong, and we will invoke a stay of the injunction. With a stay, we will continue implementing the surcharge fairly, efficiently and in full compliance with the law, as we have since day one," said Matt Rauschenbach, a spokesperson for the mayor.
The tax is expected to bring $500 million to the city annually by slapping a new surcharge on one-, two- and three-family homes valued at more than $5 million, as well as condos and co-ops valued at $1 million or more, if those dwellings are not a person’s primary residence.
It would only apply to second homes in New York City, not any of the state's other wealthy enclaves, like the Hamptons on Long Island, where Ross also owns a home, according to his lawsuit.
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