Former Commerce Secretary Wilbur Ross is challenging New York City’s pied-a-terre tax. Fortune reported that Ross says the levy targets people who “can’t retaliate at the ballot box”. He argues the tax falls on property owners who do not live in the city and so cannot vote in it.
“They don’t want voter retribution for taxes at the ballot box, so they impose these taxes on people who have no way to defend themselves,” Ross said. He made those remarks in a Fortune interview published September 30, 2026.
Who Filed the Challenge and When
Bloomberg and the New York Post reported, Bloomberg on September 29, 2026, that Wilbur Ross, Steve Wynn had sued over the New York pied-a-terre tax. The Real Deal called the challenges “Unconstitutional”.
Ross’s Constitutional Case in His Own Words
Ross laid out his arguments on Fox Business’s Kudlow on Friday, October 2. He argued that New York State’s constitution sets an “absolute cap” on real estate tax the city can impose, and the levy is dressed up as a surcharge because no room remains under that cap. He told Fortune: “The state, by fiat, cannot change the constitutional reality of what it is. Surcharge on what?”
Ross also argued the city is taxing out-of-state income through the back door, calling that a violation of the “Interstate Commerce Act”.
What the Court Actually Decided
A judge paused the tax after homeowners sued over its implementation. The Wall Street Journal reported the mayor “Must Redo” the tax, and Forbes reported the judge ordered the city to redo the implementation. On October 5, 2026, Americans for Tax Reform reported the judge found the mayor had “Wrongly Targeted NYC Residents”, meaning city residents were caught into a charge aimed at nonresidents.
That ruling was about how the tax was administered: how it was applied and who got notices. Whether the city may legally levy the tax at all is a separate question that is still open, and no court has ruled on any of Ross’s constitutional claims. If you saw a headline saying the tax was paused, it was paused over paperwork.
Robb Report, citing CNN, reported that the tax itself remains in place and the city has appealed the decision.
Where the Fight Stands Now
The New York Post reported Mayor Zohran Mamdani promises to push ahead with the tax. Habitat Magazine reported it faces Two New Lawsuits.
The Ross and Wynn constitutional challenge is set for trial on November 30, 2026, with six constitutional counts, including claims that the tax breaks the state constitutional cap and goes against interstate commerce protections.
What Remains Unresolved
One court has told the city to fix how it charged people. No court has decided whether the city may levy the tax at all. Only the second question decides whether the tax stands. When Ross’s case goes to trial, the court will take up his cap argument, his interstate commerce argument and the other counts in the complaint. Until a ruling comes on those claims, the billing order tells you nothing about how the constitutional challenge will turn out.