Steve Wynn and former Trump secretary join forces to take on NYC’s pied-à-terre tax

New York City’s pied‑à‑terre tax is facing a legal challenge from casino mogul Steve Wynn and former Trump administration official Wilbur Ross, who filed suit alleging the surcharge is unconstitutional. Both men are part‑time New Yorkers who maintain primary residences in Florida. According to the complaint, Ross could be liable for more than $83,000 on his Manhattan co‑op, while Wynn faces a possible charge exceeding $183,000 for his city residence. The lawsuit was filed Monday in a tribunal on Long Island. It argues that owners of pied‑à‑terre properties already pay substantial property taxes and make significant charitable contributions to city institutions “for the payment of each New Yorker.” A spokesperson for Governor Kathy Hochul said, “When Steve Wynn and Wilbur Ross effort to formed themselves arsenic sympathetic figures successful a combat implicit paying their just stock connected multimillion-dollar 2nd homes, they’re making the lawsuit for the pied-à-terre taxation arsenic good arsenic anyone could.” The tax, championed by Mayor Zohran Mamdani as a means to raise revenue from the wealthy to fund his progressive agenda, is projected to generate $500 million annually. It imposes a surcharge on one‑, two‑ and three‑family homes valued above $5 million, as well as condos and co‑ops valued at $1 million or more, provided those units are not the owner’s principal residence. The measure applies only to second homes within New York City, excluding other affluent enclaves such as the Hamptons on Long Island, where Ross also owns a property. Implementing the surcharge has proved difficult. An earlier suit brought by a group of homeowners alleged that the city failed to adequately identify who would owe the tax and instead placed the burden on property owners to determine liability. On Tuesday a justice ruled against the city, ordering officials to restart the process with additional due diligence. The city plans to ask the tribunal to stay the ruling while it continues to contest the decision through the appeals process. Matt Rauschenbach, a spokesperson for the mayor, said, “Today’s determination is wrong, and we volition invoke a enactment of the injunction. With a stay, we volition proceed implementing the surcharge fairly, efficiently and successful afloat compliance with the law, arsenic we person since time one,” underscoring the administration’s intent to move forward with the tax despite the judicial setback.