Ross and Wynn Challenged New York Tax
Wilbur Ross and Steve Wynn filed a lawsuit arguing the state's pied-a-terre tax is unconstitutional.
Updated on Sept. 29, 2026 in Taxes
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Wilbur Ross and Steve Wynn initiated legal action in Suffolk County to block the New York pied-a-terre tax. The plaintiffs claim the levy unfairly targets nonresidents who already contribute significant property taxes to the state.
Why it matters
The lawsuit contends that the tax violates constitutional protections by discriminating against individuals who live outside of New York City. Plaintiffs argue they are being unfairly penalized despite using fewer municipal services than full-time residents.
The legal challenge involves property holdings in Southampton and a Manhattan coop unit. It highlights the tension between non-resident tax obligations and municipal service utilization across the state.
The players
Wilbur Ross
Wilbur Ross is a businessman and investor who owns property in Southampton and a Manhattan coop unit.
Steve Wynn
Steve Wynn is a prominent real estate developer and business figure who joined as a plaintiff in this tax challenge.
The details
The complaint alleges that the state tax creates an inequitable burden on property owners who maintain primary residences in other states, such as Florida. By targeting those who own secondary units, the suit seeks to overturn the current tax framework implemented by the state.
Timeline
The lawsuit was formally filed in Suffolk County on September 28, 2026.
Market Dynamics
This litigation highlights growing friction between non-resident property owners and state revenue authorities regarding the New York State pied-a-terre tax. Such legal actions often precede broader debates about equitable taxation and the rights of part-time residents in high-cost housing markets.
Retail investors and property owners with secondary residences in the state will be watching this case for potential precedents regarding state-level luxury tax liability. A successful challenge could influence future tax planning strategies for individuals with multiple real estate holdings.
The takeaway
This case underscores the ongoing legal complexity surrounding secondary residency taxation in major metropolitan areas. Property owners should monitor how this litigation impacts future assessment policies for non-primary homes.
Further reading
Learn more about the current tax landscape in the New York Taxes section.
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Should nonresidents owning vacation homes in a city pay higher property taxes than full-time residents?
