State Lawmakers Plan Hearing on NYC Property Tax Fixes

With widespread agreement that New York City’s complex and inconsistent property tax system needs to be overhauled but little action to do so, state lawmakers are looking to jumpstart the process with at least one public hearing in the fall.

Assemblyman Dan Quart, a Manhattanite who has introduced a number of bills addressing the city’s property tax code, is behind the push to bring the issue to the forefront after promised reform efforts by the New York City Council and the de Blasio administration fell by the wayside.

New York City has a well-documented history of charging widely varying tax rates depending on where a property is situated. New York City’s four property tax classes—residential homes; cooperatives and condominiums; utilities; and commercial buildings—also have very different rates. 

“There’s a lack of uniformity, there’s a lack of predictability, and the city has accepted that the system needs reform,” Quart said. “They refer to it as comprehensive reform, and I agree with them. That’s why I think it really calls out for a hearing. The state Legislature has an obligation—I believe a responsibility—to have the city come forth and talk about the ways they want to reform the system. A hearing would be the perfect opportunity to do so.”

In a letter sent Wednesday to Assemblywoman Sandy Galef, chair of the Assembly Committee on Real Property Taxation, Quart requested a hearing “to examine the current state of the New York City property tax system and solicit feedback from the New York City Department of Finance and other stakeholders on how to improve the system.” In addition to Quart, 41 Assembly colleagues from New York City have signed on so far.

“Property tax reform has been on every mayor’s agenda, and is something we in Albany are constantly trying to effect,” Quart wrote in the letter. “Now that New York City is finally guided by an administration with an interest in addressing critical questions of equity and fairness in our property tax system, it is essential that we ensure the State Legislature is included in the conversation.”

Galef said she expects to hold a hearing or perhaps a roundtable discussion, likely in the early fall. She said her Real Property Taxation Committee has a lot of bills before it dealing with New York City property taxes, and that many of her colleagues are anxious to advance them. Although the city hasn’t made property taxes a top priority, Galef said Mayor Bill de Blasio understood the importance of reform.

“I had a chance to query the mayor, for just a short question while he was up here, about the taxing policies and I think he is also aware that it is a very big issue,” Galef said. “It’s also a very tough issue when you’re looking at classifications and changing things—there’s a lot of major impacts.” 

See Quart's letter below:

Dan Quart Property Tax Letter