In a recent development that holds implications for New York City’s real estate taxation system, the city’s highest court has tentatively split on a ruling that could invite a flood of owners registering protests over property valuations, as hinted by one city attorney. The decision came as a result of an appeal led by attorneys from Latham & Watkins — including ex-New York Chief Judge Jonathan Lippman. While not being a final ruling, it still signifies a notable stride towards a possible reform of the system. The original report suggests that the decades-old system has been the subject of criticism for underselling condos and co-ops in affluent localities while proportionately taxing neighborhoods predominantly occupied by people of color. Such disparity may account for a difference of approximately $400 million yearly.
Plaintiffs came together in agreement against what they called a “disparate” real estate taxation system. Its reconstruction, ushered in by the recent split judgement, might just tip the scale in a direction that attempts to bridge such disparities – marking a key moment in New York City’s taxation history in the process.