The recent ruling allowing the Tax Equity Now NY (TENNY) lawsuit to proceed, as reported in Aaron Short’s article in the Commercial Observer, could intersect with ongoing legislative efforts, including the proposed Five Borough Fair Property Tax Act introduced in June 2024, and which I blogged about here. This lawsuit challenges key aspects of New York City’s property tax system, alleging that it unfairly burdens renters and property owners in lower-income neighborhoods while offering more favorable tax treatment to wealthier condo and co-op owners. Similarly, the Five Borough Fair Property Tax Act seeks to address disparities by eliminating fractional assessments, repealing the coop-condo abatement, and moving toward a market-based property valuation system. The next court date for the TENNY case is set for September 17, 2024, and it may provide additional clarity on how the case could impact broader property tax reforms.
The Court of Appeals decision earlier this year revived claims that the current property tax system violates both the federal Fair Housing Act and New York State’s Real Property Tax Law, setting the stage for a significant review of how properties are assessed. In light of this, the goals of the TENNY lawsuit and the legislative proposals in the Five Borough Fair Property Tax Act appear to align in certain areas, particularly in how different property types are taxed and assessed. With the court’s acknowledgment that inequities exist, pressure could mount on city officials and legislators to advance both legal and policy reforms. As the lawsuit proceeds and legislative discussions continue, it remains to be seen how these developments will shape the future of New York City’s property tax system.
