Earlier this week, the government announced its preliminary budget, which included raising the city’s property taxes by 9.5 percent to cover a $5 billion deficit — a move that Mamdani said he would only use as a “tool of last resort” and that Governor Kathy Hochul appears disinclined to support.
In addition to the budget, Mamdani also indicated he planned to submit a proposal to reform the city’s property tax system to New York state lawmakers in the coming weeks, following a promise former Mayor Eric Adams made almost exactly a year ago.
Adams, who campaigned in part on property tax reform, told a senator on Tin Cup Day last year that his administration was working on its own reform proposals. That plan never came to fruition.
Now Mamdani is renewing his previous vows to take up the mantle of Albany. His budget director, Sherif Soliman, said Tuesday that these reforms would be based on the de Blasio administration’s 2021 Property Tax Commission report and would likely include removing restrictions on raising assessed values and assessing co-ops and condos based on a sales-based market value instead of rent.
That timetable and framework for the reforms, even if vague, could be an indication that his government is closer to actually changing the tax system than its predecessors. Yet they appear to be falling back on the same excuse that has largely kept reforms at bay.
“New York City does not need Albany’s approval to fix its property tax system,” Martha Stark, policy director of Tax Equity Now New York, said in a statement. Stark’s organization, also known as TENNY, is in the midst of a decade-long lawsuit against the city over alleged inequities in the system.
Property tax reform is New York’s hot potato. Mayors are taking the issue to their successors, saying the power to change the system lies with Albany. Meanwhile, state lawmakers say the only way to greenlight reforms is if a plan is championed by the mayor.
The back-and-forth is one reason why reform has remained elusive, though Stark’s group has pushed back against previous administrations’ positions that the city lacks the authority to make meaningful changes. Although the system is established under state law, TENNY has argued that the city has control over how properties are valued and could change assessment methods that have led to the alleged overtaxing of homeowners in lower-income neighborhoods.
An Appeals Court judge essentially agreed with TENNY in 2024 when it chose to revive some of the organization’s claims against the city and dismiss others involving the state.
“The Court of Appeals has made clear that the city has the authority and legal obligation to uniformly assess properties,” Stark said in the statement. “A lawful system can start today. The law is clear, and every day that uniform assessments are delayed, New Yorkers pay the price.”
What we’re thinking about: The federal trial of the Alexander brothers resumes next week, with disgraced real estate agents Tal and Oren Alexander and their brother Alon facing 12 charges related to sex trafficking. On Tuesday I will be back in court with my colleague Katherine Kallergis. What do you want to know about the lawsuit so far? Send your thoughts to sheridan.wall@therealdeal.com.
Something we learned: In Montreal, sanitation workers use a snow vacuum to clear streets after a storm — a machine that New York City officials tried to use decades ago but couldn’t because of the amount of trash buried in snow piles, according to Gothamist. The Canadian city also has a snow removal budget of more than $200 million, which is more than double the average amount spent in New York over the past five years.
Elsewhere…
– Speaking of snow, New York City and the surrounding area, including Long Island, Westchester and parts of Connecticut, could bring more on Sunday. The amount of snow forecast varies by report — Gothamist projected three to five inches, while Newsday estimated at as much as six to ten centimeters.
– The roughly 4,000 nurses still striking in New York City agreed to a tentative deal with New York Presbyterian and Columbia hospitals, ending a nearly six-week strike, the New York Times. The agreement follows an agreement reached last week with nurses at the Mount Sinai hospital.
Closing time
Residential: The highest residential deal recorded on Friday was $19.8 million for 200 East 75th Street, 12A. The Lenox Hill apartment is 6,100 square feet. Compass’ Alexa Lambert, Susan Wires and Marc Achilles are credited.
Commercial: The best recorded commercial deal was $10.5 million for 3 East 9th Street. The Greenwich Village apartment is five stories and 8,200 square feet. The Corcoran Group Steve Gold and William McLarnon have the entry.
New on the market: The highest price for a home to hit the market was $10 million for 10 Gracie Square, Unit 3/4C. The Upper East Side co-op is 5,200 square feet. Sotheby’s International Realty has the entry.
Groundbreaking: The largest new building permit filing was for a proposed seven-story building at 87 Havemeyer Street in Williamsburg. Kao-Hwa Lee Architects is the registered applicant.
— Joseph Jungerman
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