HK is closely following the significant developments in the Tax Equity Now New York LLC v. City of New York case. Firm partner Warren Dubitsky, recently provided expert commentary in a Bloomberg Tax article by Danielle Muoio Dunn, addressing the potential outcomes and implications of the New York Court of Appeals’ decision.

The case, a contentious lawsuit filed by Tax Equity Now New York (TENNY), challenges the current property tax system in New York City, arguing that it unfairly benefits affluent homeowners at the expense of lower-income residents and communities of color. The suit contends that the system’s inequities violate state and federal laws, including the New York and US constitutions, the state’s Real Property Tax Law, and the federal Fair Housing Act.

Mr. Dubitsky expressed his views on the case’s trajectory and potential rulings. “While it is procedurally possible for the high court to rule on the merits of TENNY’s arguments, such an outcome would be quite surprising,” said Dubitsky in his interview with Bloomberg Tax. He anticipates that the court’s decision will likely focus on procedural aspects, particularly the appellate division’s dismissal of the case.

The case has garnered attention due to its potential to significantly impact New York City’s largest source of tax revenue and its long-term implications for the city’s property tax code. The outcome could catalyze a major overhaul of the 40-year-old tax code, affecting millions of New Yorkers.