NYC Housing Group Exposes Property Tax Disparities Between Wealthy And Low-Income Areas

New York City is being criticized for its slow action in addressing property tax breaks that disproportionately impact low-income communities.

A housing organization is criticizing New York City landlords in upscale, predominantly white neighborhoods, accusing them of profiting from property tax breaks at the expense of struggling minority communities.

Tax Equity Now New York (TENNY) filed a new motion in Manhattan court on Jan. 23 to push for a landmark ruling the group won against the city last March, NY Post reports. TENNY challenged NYC’s current assessment ratio for property taxes, arguing it discriminates against minorities in low-income neighborhoods by unfairly inflating their property values for tax purposes, forcing them to bear a disproportionate tax burden.

Meanwhile, landlords in wealthier and trendier areas of the city continue to pay less than their fair share of taxes while the city stalls on reforming the tax assessment ratio—a formula that determines property taxes—according to a coalition of homeowners, renters, and civil rights advocates.

“We are flabbergasted and disappointed that the city has not lowered the assessment ratio for homeowners in New York City to ensure uniformity despite the Court of Appeals decision that the city’s assessments are not lawful,” said Martha Stark, TENNY’s policy director, in a statement.

Lawyers for TENNY filed a new motion arguing that the city’s proposed 2025/2026 assessment roll continues to assign higher property values in lower-income areas like Jamaica, Queens, and the South Bronx, compared to similar properties in upscale predominantly white neighborhoods such as Park Slope, Brooklyn, and parts of Manhattan.

“Areas of New York City, which have historically appreciated at lower rates—which generally have lower valued homes and where minority groups disproportionately live—are dramatically overassessed and overtaxed,” TENNY’s motion states.

Stark points out that the city’s unequal property tax system only exacerbates the city’s affordability crisis.

“Despite the City’s expressed desire to make the city more affordable for hardworking homeowners and renters, they are ignoring their ability to do just that in the area where they have the most control: the property tax,” Stark said.

TENNY’s lawyers are urging the court to resolve the issue by Feb. 20, the deadline set by the New York City Charter for notifying property owners about any increases in their assessments for the year. The group maintains that the court’s ruling was meant to address the inequity before new tax bills are sent out.

However, if a decision isn’t reached by that date, TENNY argues, the current system will violate the law by relying on improper assessments for hundreds of thousands of homeowners. A City Hall representative argues that implementing a new property tax system would make it challenging to fund city services.

“TENNY’s position would harm the very taxpayers they claim they are trying to protect — particularly working-class New Yorkers — and create negative fiscal impacts that would jeopardize the city’s ability to provide crucial services,” the representative said after the new motion was filed.

The City Hall rep also reiterated the local government’s commitment to working on a legislative solution.

“The Adams administration is committed to working toward reform with our legislative partners to create a fairer and more equitable property tax system that considers the needs of every New Yorker,” the representative added.