Casino Mogul Steve Wynn and Former Secretary Wilbur Ross Sue Over NYC Luxury Tax

POLICY WIRE — New York, USA — Casino magnate Steve Wynn and former Trump administration Commerce Secretary Wilbur Ross have launched a legal challenge against New York City’s controversial tax on luxury second homes. The two high-profile figures, both of whom maintain primary residences in Florida, filed a lawsuit on Monday arguing that the surcharge is unconstitutional due to its discriminatory nature toward non-residents.

The tax, designed to generate revenue from wealthy individuals who own high-end properties in the city but reside elsewhere, could impose significant financial burdens on the plaintiffs. Court filings indicate that Ross faces a potential bill exceeding $83,000 for his Manhattan co-op, while Wynn is looking at a possible charge of more than $183,000 for his city residence.

The lawsuit, filed in a Long Island court, contends that these property owners already contribute substantial amounts through existing property taxes and philanthropic support for New York’s cultural institutions. A spokesperson for Governor Kathy Hochul dismissed the legal action, suggesting that the wealthy plaintiffs’ resistance to the tax only reinforces the necessity of the policy.

This legal battle arrives as the city struggles with the implementation of the surcharge, which is projected to bring in $500 million annually. The tax applies to one-, two-, and three-family homes valued over $5 million, as well as condos and co-ops worth at least $1 million, provided they are not the owner’s primary residence.

City officials are currently navigating a separate legal challenge regarding the tax’s rollout, with a judge recently ordering the city to restart its due diligence process. Mayor Zohran Mamdani’s administration has indicated it will seek a stay of that injunction to continue enforcing the law.

Reporting by Policy-Wire (PW)