Maryland ruling could unburden NYC pied-à-terre owners

NYC’s statutory residency test may be unconstitutional

TRD New York /
May.May 24, 2015 03:00 PM

The U.S. Supreme Court has ruled against Maryland’s tax regime in Comptroller v. Wynne. And that could be a victory for wealthy owners of second homes in New York who face double taxation on investment income.

“I believe it’s clear now that the New York statutory residency test is unconstitutional,” Arthur Rosen, a state and local tax lawyer with McDermott, Will & Emery, told Forbes. In fact, second home owners in New York who are paying double taxes on investment income – “to New York as statutory residents and to their home state as domiciliaries” – are due tax refunds, he added.

Nevertheless, the New York Department of Taxation isn’t conceding anything. “We’re continuing to review the case,” a spokesperson told Forbes.

The Supreme Court ruled that a Maryland income-tax policy was unconstitutional because it violated the Commerce Clause by hindering interstate commerce through double taxation. [Forbes]Christopher Cameron

Related Articles

Miki Naftali and 1045 Madison Avenue (Credit: Getty Images, Google Maps)

Naftali accused of violating zoning laws at UES development

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

A lawsuit accuses the Lexington Hotel of negligence for failing to act in emergency (Credit: iStock)

Father’s harrowing tale puts hotels’ liability in spotlight

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

Caspi Development’s Joshua Caspi, Core Asset Management’s James R. Parks, Hana Financial Investment’s Lee Jin-Kook, and 456 Greenwich

Goodbye bankruptcy, hello construction loan: Breakthrough for Tribeca hotel project

10 Hanover Square (Credit: Google Maps)

FiDi landlord violated rent stabilization regs for years: lawsuit

Adam Leitman Bailey (Credit: iStock)

Adam Leitman Bailey can practice law again

Jerry Rotonda (Credit: LinkedIn)

Former Deutsche Bank exec has defaulted on $3M loan, lawsuit says