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You are here: Home1 / Constitutional Law2 / THE COMPLAINT STATED CAUSES OF ACTION AGAINST NYC ALLEGING CONSTITUTIONAL...
Constitutional Law, Municipal Law, Real Property Tax Law

THE COMPLAINT STATED CAUSES OF ACTION AGAINST NYC ALLEGING CONSTITUTIONAL AND STATUTORY VIOLATIONS STEMMING FROM AN UNEQUAL AND DISCRIMINATORY PROPERTY TAX SCHEME (CT APP).

The Court of Appeals, in a full-fledged opinion by Judge Rivera, over a two-judge partial dissent and a one-judge partial dissent, reversing (modifying) the appellate division, determined the complaint stated causes action for constitutional and statutory violations of the Real Property Tax Law (RPTL) and the federal Fair Housing Act (FHA) relating to an unequal property-tax scheme:

Plaintiff Tax Equity Now NY, LLC (TENNY) challenges New York City’s property-tax system, alleging that the system imposes substantially unequal tax bills on similarly-valued properties that bear little relationship to the properties’ fair market value. According to the complaint, the result is staggering inequities and a regressive tax system that hurts those who can least afford to pay heavy taxes. The complaint further alleges that multi-million-dollar properties are taxed at similar or lower rates than less valuable properties and that real property in majority-people-of-color districts are overassessed and subjected to higher taxes compared to properties in majority-white districts. TENNY seeks declaratory and injunctive relief against City and State defendants for alleged constitutional and statutory violations caused by the City’s tax scheme. Despite the comprehensive, detailed allegations and legal precedent supporting the causes of action, the Appellate Division dismissed the complaint in its entirety at the pleading stage for failure to state any claim. That was error. * * *

… [T]he complaint’s allegations, supported with independent studies and the City’s own data of widening disparities resulting from its annually-repeated assessment methodology to Class One and Two properties, sufficiently plead violations of RPTL 305 (2) against the City. * * *

The FHA’s legislative goals are twofold: elimination of discrimination in housing and the promotion of residential integration  * * *

… [U]nder our State’s liberal pleading standards, TENNY’s allegation that the City’s tax system perpetuates segregation suffices … . Tax Equity Now NY LLC v City of New York, 2024 NY Slip Op 01498, CtApp 3-19-24

Practice Point: Under New York’s liberal pleading standards, the complaint stated causes of action against NYC for violations of the Real Property Tax Law and the federal Fair Housing Act stemming from an unequal and discriminatory property tax scheme.

 

March 19, 2024
Tags: Court of Appeals
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https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png 0 0 Bruce Freeman https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png Bruce Freeman2024-03-19 13:41:592024-03-29 09:35:00THE COMPLAINT STATED CAUSES OF ACTION AGAINST NYC ALLEGING CONSTITUTIONAL AND STATUTORY VIOLATIONS STEMMING FROM AN UNEQUAL AND DISCRIMINATORY PROPERTY TAX SCHEME (CT APP).
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