Advisory Commission to Recommend Reforms to Property Tax System

Mayor de Blasio and Council Speaker Johnson recently announced the formation of a new advisory commission to develop recommendations to reform NYC’s property tax system with the goal of making it simpler, clearer, and fairer, while ensuring that there is no reduction in revenue used to fund essential city services. The commission will solicit input from the public by holding at least 10 public hearings.

The last in-depth review of the system by a government-appointed commission was in 1993.

New York City’s current property tax system is set forth in state law and has existed for nearly four decades. Its complex structure classifies properties into multiple categories, referred to as tax classes, and contains provisions that govern fractional assessments, market valuation restrictions, and caps on growth, among other things. Application of the various provisions of state law can result in differences in taxes paid on properties, which may become more pronounced with the passage of time.

The advisory commission will evaluate all aspects of the current property tax system with an eye to transparency, efficiency, and fairness. Its comprehensive review will include, but won’t be limited to:

• The tax classification system;
• The methods of determining property market values and assessments;
• Treatment of property value increases;
• Relief for low-income and senior homeowners; and
• Method of calculating tax rates.

The advisory commission’s recommendations may include changes that could be made at the city level, as well as those that would require state legislation. The commission will also review comparable property tax systems across the nation.