New York’s pied-à-terre tax faces an administrative setback and a constitutional challenge from former Commerce Secretary Wilbur Ross, his wife Hilary Geary Ross and casino developer Steve Wynn. A judge ruled Tuesday that the city must roll back notices sent to property owners and effectively restart the process after a troubled rollout. The Florida residents sued New York in Suffolk County Supreme Court on Monday, arguing that the surcharge is an unconstitutional property tax and discriminates against out-of-state owners. The complaint says the charge is calculated from property values, collected through the city’s property-tax system and becomes a lien if unpaid. It also argues that excluding the revenue from the state constitutional cap on city real-estate taxes cannot change the levy’s legal character, and that the measure violates the U.S. Constitution’s Privileges and Immunities and Commerce clauses, along with state and federal equal-protection guarantees. The Department of Finance billed the Rosses $83,531.52 on their co-op and Wynn $183,094.69. New York Governor Kathy Hochul’s office said wealthy second-home owners should help fund city services, while Mayor Zohran Mamdani’s spokesperson said the city would intervene and defend the surcharge. The tax applies to New York City second homes valued above $5 million and co-ops or condominiums valued above $1 million, with exemptions for primary residences and leased rental units.