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Steve Wynn and Wilbur Ross Take Mamdani’s NYC Pied-à-Terre Tax Fight to Court
Steve Wynn and former Trump Commerce Secretary Wilbur Ross are taking NYC Mayor Zohran Mamdani’s introduced New York’s luxury second-home tax pied-à-terre to court, challenging a surcharge that could leave the two Florida residents facing six-figure bills for their Manhattan properties.
The legal challenge adds another major complication to New York City’s rollout of its controversial pied-à-terre tax, a surcharge targeting expensive residential properties that are not owners’ primary homes. The lawsuit, filed against New York state, argues that the tax is unconstitutional because it treats property owners who primarily live outside the state differently from New York residents.
The case comes as the city is already fighting a separate lawsuit over how it has implemented the tax.
Wynn, Ross Face Major Potential Bills
According to the lawsuit, Wilbur Ross could face a surcharge exceeding $83,000 on his Manhattan co-op. Steve Wynn, the casino entrepreneur and developer, could face a bill of more than $183,000 for his New York residence. Both men identify Florida as their primary state of residence.
Their legal argument goes beyond the bill amounts. The plaintiffs contend that second-home owners already pay substantial New York property taxes and contribute to the city’s cultural and charitable institutions.
The lawsuit also notes that the surcharge applies specifically to qualifying second homes in New York City rather than wealthy second-home communities elsewhere in the state, including the Hamptons.
What Is the Pied-à-Terre Tax?
The pied-à-terre surcharge was designed to generate additional revenue from owners of expensive properties who do not use those homes as their primary residences.
Under the current framework, the tax applies to certain one-, two-, and three-family homes valued above $5 million, along with qualifying condominiums and co-ops valued at $1 million or more, when the property is not the owner’s primary residence.
City officials project the measure could generate about $500 million annually.
The policy has become an important part of Mayor Zohran Mamdani’s revenue plans, but its rollout has quickly become entangled in court battles.
Judge Orders Tax Rollout Reworked
In a separate case, New York Supreme Court Justice Wayne Ozzi ruled that the city must redo parts of its implementation after finding problems with how officials identified and notified potentially affected homeowners.
The city had published information involving hundreds of thousands of properties and sent notices to thousands of homeowners. Ozzi concluded that the rollout placed an inappropriate burden on property owners and required the city to restart the notification process using updated tax information.
The Zohran Mamdani administration has appealed the ruling, putting the lower court’s order on hold while the legal process continues. City officials have said they intend to continue implementing the surcharge in accordance with the law.
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New York Defends the Tax
New York officials have rejected Wynn and Ross’s arguments.
A spokesperson for Gov. Kathy Hochul said the lawsuit underscores the policy’s purpose, arguing that owners of multimillion-dollar second homes should contribute toward the city services that support those properties and their surrounding communities.
The constitutional challenge could now determine whether New York’s effort to impose an additional tax on luxury second homes can survive a direct legal test.
For Wynn and Ross, the stakes are immediate: their lawsuit seeks to prevent the surcharge from being applied to their properties. For New York City, the case could affect a revenue plan projected to bring in hundreds of millions of dollars each year.
The dispute now moves into a broader legal battle over taxation, residency, and how far New York can go in charging owners of high-value homes who primarily live elsewhere.
