Property Tax Reform

The Story

At long last, the mayor and city council have announced a commission to address New York City’s unfair property tax policies. Penalizing the owners of some types of property while rewarding others, the system deforms the market and limits choice. Elected city officials will do New York property owners a great service if they can establish fairness in assessments and levies.

The Facts You Need to Know

  1. Condos: Manhattan condominiums enjoy favoritism under the current system, paying relatively low taxes because they’re treated as rent-stabilized units. Read more.

  2. Balance: Caps on assessment increases keep homes in hot neighborhoods undervalued, while homeowners in staid areas have to pay disproportionately higher amounts. Read more.

  3. Use: New York City property is taxed differently according to its use, a system that many economists find unproductive and inefficient. Read more.

“The city’s property-tax system is a crazy quilt constructed with little obvious rationale.”

Howard Husock, Manhattan Institute vice president of research and publications

Twitter Take

The Past is Present

New York's Most Unjust Tax By Gerard Mildner (Summer 1991)

”New York’s property tax oppresses the poor, destroys housing stock, and discourages new business. Even worse, it costs the city money.”

And in other news...

”The bill, however, still faces an uncertain fate in the state Senate, where it remains in the Health Committee.”