Reform NYC’s Property Taxes, And Soon: City Officials Say

NEW YORK CITY — For homeowners who didn't have three hours to spare, here's the takeaway from a marathon City Council hearing Tuesday: New York City's property tax system is terrible and must be changed.

But how — and, perhaps more importantly, if — the property tax system could change depends on New York City and state elected leaders working together, officials said.

"This is going to take the governor, mayor, Legislature, City Council, all collaborating," city Comptroller Brad Lander testified. "That's not an easy thing to do."

The impetus for the hearing was two-fold: the expiration of the controversial "421-a" tax break and a study released toward the end of former Mayor Bill de Blasio's term that outlined sweeping potential reforms to make the system more equitable and understandable.

The study argued small residential property tax owners — specifically one-to-three family homes, coops, condos and small rentals — should be put in the same tax class. It also recommended that tax class rates should be fixed for five-year periods, among other changes to simplify the system.

Lander, for his part, said he broadly agreed with the study's proposals, which would eliminate value cap increases that keep taxes artificially lower for many wealthier New Yorkers while other lower-income homeowners are overtaxed.

He called himself an "undertaxed" homeowner.

“Over time, my neighbors and I will have to pay something more like our fair share,” he said.

Lander argued the city should develop a new version of the vaunted "Mitchell-Lama" program that would create permanently affordable and cooperative homeownership.

Read Lander's recommendations here.

See the NYC Advisory Commission on Property Tax Reform here.