STATE COURT REFUSES TO DISMISS ACTION CHALLENGING CONSTITUTIONALITY OF NYC PROPERTY TAX SYSTEM -

The Supreme Court, New York County, has denied motions to dismiss an action seeking relief for alleged inequalities in the New York City property tax system. Tax Equity Now NY LLC v. City of New York, Index No. 153759/2017, 2018 NY Slip Op. 32378(U) (Sup. Ct. N.Y. Cty., Sept. 24, 2018). The court, while dismissing some of the claims against New York State, including claims alleging violations of the Equal Protection Clause and the Federal Fair Housing Act (“FHA”), allowed the other claims to proceed, finding that the plaintiff organization, Tax Equity Now NY LLC (“TENNY”), sufficiently alleged the existence of injuries to its members and did not have disqualifying conflicts of interest.

The parties. The action was brought against the City of New York and the New York City Department of Finance (the “City Defendants”) and the State of New York and the New York Office of Real Property Tax Services (the “State Defendants”), seeking major changes in the system used to assess property tax on New York City properties. In its complaint, TENNY describes itself as “an association committed to pursuing legal and political reform to address the inequity and illegality of New York City’s property tax system,” with members that include owners and renters of real property claiming to be harmed by New York City’s property tax system, as well as organizations “dedicated to securing equal treatment and economic justice for minority residents of New York City.” (Complaint ¶ 33.) TENNY’s Policy Director, Martha Stark, served as the Commissioner of the New York City Department of Finance from 2002 to 2009.