Tax Equity Now New York (TENNY) v. City of New York

TENNY v. City of New York — New York State’s highest court breathes new life into a lawsuit that may finally force New York City officials to address long-standing concerns in the property tax system.

In a March 19th decision, the Court of Appeals revived a lawsuit claiming New York City’s “regressive” property tax system violates the federal Fair Housing Act because it disproportionately burdens low-income communities. The Court’s decision and dissenting opinions can be found here: Microsoft Word – 1opn24-Decision.docx (nycourts.gov)

The plaintiff, Tax Equity Now New York (TENNY), is a coalition of housing and tax advocacy groups that originally sued both the City and State. TENNY’s complaint alleged, among other things, that multi-million-dollar properties are taxed at similar or lower rates than less valuable properties and that, as a result, the City’s property tax system places a disproportionately heavier tax burden on real property in majority-minority districts.

In a 4-3 decision, the Court ruled that the lower court should not have dismissed TENNY’s complaint in its entirety. The ruling allows TENNY’s original claims against the City to proceed, but the claims against the State remain dismissed. While the Court did not finally resolve the lawsuit claims, the fallout from the TENNY Decision remains to be seen as pressured City officials continue to grapple with various efforts at reform.

The City’s property tax system troubles continue to be monitored by the Farrell Fritz Tax Certiorari Team in prior Tax Tracker spotlights, which can be found here: