Maryland ruling could unburden NYC pied-à-terre owners

NYC’s statutory residency test may be unconstitutional

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

arrow_forward_ios
A rendering of the Staten Island Wheel (Rendering via Perkins Eastman)

Developer of the failed New York Wheel sues its contractor … again

Developer of the failed New York Wheel sues its contractor … again
Knotel CEO Amol Sarva (Sasha Maslov, Knotel, iStock)

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel
Judge Ronnie Abrams ruled several laws signed by Mayor Bill de Blasio are constitutional. (Wikipedia Commons, iStock, Getty)

Judge upholds city laws protecting non-paying businesses

Judge upholds city laws protecting non-paying businesses
Churchill Real Estate's Justin Ehrlich and 381 Broadway (Google Maps)

Two-year Tribeca foreclosure saga continues with lawsuit over $20M

Two-year Tribeca foreclosure saga continues with lawsuit over $20M
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

Vanke seeks to remove RFR from Midtown condo project

Vanke seeks to remove RFR from Midtown condo project
Magnum Real Estate's Ben Shaoul and 87 Leonard Street (Getty; StreetEasy)

Tribeca condo owners sue Magnum Real Estate, seeking $7.6M

Tribeca condo owners sue Magnum Real Estate, seeking $7.6M
From left: Ben Ashkenazy, 1991 Broadway, 2067 Broadway and Samuel Gindi (Getty; Google Maps)

Billionaire developer Ben Ashkenazy in feud with investor over reputation, cash

Billionaire developer Ben Ashkenazy in feud with investor over reputation, cash
New York Wheel (S9 Architecture|Perkins Eastman; Pixabay)

Going in circles: Dueling New York Wheel lawsuits emerge

Going in circles: Dueling New York Wheel lawsuits emerge
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...