On March 19, 2024, the New York Court of Appeals made a decision in the case of Tax Equity Now NY LLC v. City of New York,1 with the judges siding with the real estate group Tax Equity Now New York (TENNY) challenging the city’s current system on grounds it violates the federal Fair Housing Act real property tax law. TENNY claimed the current system applies far higher rates on rental buildings and small homes in lower-income neighborhoods than on condos and homes in wealthier areas.
In addition to ruling in favor of TENNY, the judges in the 4-to-3 decision provided dicta that many city officials are aware of the unfair impact of how taxes are currently levied and have done nothing to remedy the situation. Given that property taxes constitute a significant portion of New York City’s income, collaboration among state legislators, city officials, and advocates is imperative to devise a transparent and equitable property tax system that accurately reflects property values and ensures city revenue does not see substantial cuts.
The local market experts at Ryan will continue to monitor this case and the impact it could have on our clients. We encourage you to reach out with questions.
1 Tax Equity Now NY LLC v. City of New York, 2024 NY Slip Op 01498 Decided on March 19, 2024, Court of Appeals.
TECHNICAL INFORMATION CONTACT:
Steve Thompson
Principal
Ryan
212.871.3901
steve.thompson@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
- Sujet
- Steve Thompson