Ross and Wynn Challenged New York Pied-à-Terre Tax
The legal filing argues that the state's tax policy unfairly discriminates against property owners who live outside the city.
Updated on Sept. 29, 2026 in Taxes
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Wilbur Ross and Steve Wynn filed a lawsuit in Suffolk County challenging the constitutionality of the New York pied-à-terre tax. The legal challenge alleges the tax improperly targets individuals who maintain residences in the state but live elsewhere.
Why it matters
The plaintiffs claim that nonresidents already contribute significant property taxes while placing fewer demands on municipal services than full-time residents. This challenge brings the fairness of nonresident tax structures into legal focus for property owners.
The lawsuit, filed on September 28, 2026, represents a direct challenge to the state's tax framework governing property owners with units in Manhattan and Southampton. The total fiscal exposure for affected nonresidents remains a subject of the ongoing litigation.
The players
Wilbur Ross
An investor and former government official who maintains residential properties in Manhattan and Southampton.
Steve Wynn
A prominent real estate developer and former casino executive who is a named plaintiff in the tax lawsuit.
The details
The lawsuit argues that the pied-à-terre tax creates a discriminatory financial burden by targeting owners who spend time in the state but maintain primary residences elsewhere. The plaintiffs, including Wilbur Ross and Hilary Geary Ross, contend that their existing property tax contributions should be sufficient given their limited usage of local municipal services. This case seeks to determine if the state's current tax code violates constitutional protections for nonresidents.
Timeline
September 28, 2026: The lawsuit was filed in Suffolk County.
Money Landscape
This litigation highlights the ongoing tension between state revenue authorities and wealthy nonresident taxpayers. It marks a significant legal escalation following years of debate regarding the equity of special property taxes on secondary homes.
Property owners residing outside of New York should monitor this case for potential changes to their tax liabilities. Affected individuals should consult with a qualified tax professional to evaluate how this legal challenge may influence their personal financial planning.
The takeaway
This case tests the extent of state taxing authority over nonresidents who hold high-value secondary property. Property owners should discuss their current tax obligations with a qualified tax professional to ensure they are prepared for potential regulatory shifts.
Further reading
For broader insight into state property levy rules, review our Taxes section.
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Should nonresidents owning vacation homes in a city pay higher property taxes than full-time residents?
