New York City was ordered to overhaul its tax system in a landmark state Supreme Court ruling after black property owners argued the process favored wealthy white property owners.
“After decades of shirking responsibility to fix what everyone agrees is a problem and seven years of legal battles, city and state leaders are failing millions of low-income and minority renters. “It would require creating a property tax system that is fair and just for homeowners,” said Martha Stark, policy director for Tax Equity Now New York, TENNY, the group that filed the lawsuit. he said in a statement after the verdict on Tuesday.
The plaintiffs argued that the city’s assessment process, which helps determine property owners’ taxes, discriminates against minorities by unfairly inflating the value of their properties for tax purposes.
For example, the system values properties in lower economic areas like Jamaica and Queens at higher values compared to similar properties in upscale, predominantly white neighborhoods like Park Slope and Brooklyn. .
TENNY argued in its lawsuit that these different assessments amount to de facto discrimination that hurts “those who cannot afford to pay heavier taxes” due to “appalling inequality,” according to court documents.
“Multi-million dollar properties are taxed at the same or lower rates as less valuable properties, and properties in predominantly white neighborhoods are overvalued compared to properties in predominantly white neighborhoods. and are subject to higher taxes,” the document states. To tell.
“Tenney’s argument that the city’s tax system perpetuates racial discrimination is sufficient,” state Superior Court Judge Jenny Rivera wrote in an opinion.
“The court’s decision limits the city’s ability to make changes within its executive authority that would reduce property tax disparities,” Anna Champenney, a top researcher at the Citizens’ Budget Committee, told the Post on Tuesday. “It seems to suggest that they have it.”
Lower courts have ruled that it is up to the state Legislature to resolve the issue.
“What the court has said is that the city can achieve uniformity of assessment within the limits. It can be done administratively,” Stark told the Post in an interview Tuesday.
The exact details of how the city must comply will be determined by lower courts down the road.
New York City Mayor Eric Adams declined Tuesday to comment on the court’s decision, but his lawyer said he would follow legal instructions.
“The Court of Appeals has decided that the appeal will stand. This does not mean the case is over, but will go back to the lower court for a decision,” said Sylvia of the New York City Corporation. Hines-Radix added.
Gov. Kathy Hochul also said she and her legal team were continuing to review the ruling, without elaborating.
“I’m not going to get ahead of myself on this,” Hochul said Tuesday. “It’s very important that we get this right and that we follow the mandates of this decision, but it’s also important that we make sure that we’re doing our best to eliminate discrimination.”
This landmark decision was handed down by an increasingly liberal majority in the Court of Appeals. The leftward shift has become increasingly pronounced since Judge Hochul appointed Judge Rowan Wilson as presiding judge last year after a bitter battle over more moderate candidates.
