- The Harlem Neighborhood Block Association's Newsletter
- Posts
- Taxing Black Homeowners
Taxing Black Homeowners
The Furman Center
The Harlem Neighborhood Block Association
May 14, 2024 • Estimated Reading Time: 3 minutes
Tax Equity Now New York, which alleges New York City's property tax system unlawfully discriminates against New Yorkers of color and favors wealthy, white residents, recently filed a lawsuit in New York State's highest court to redress this systemic issue. Analysis by NYU’s Furman Center (below) explains how these property taxes are calculated and reveals the potential for inequity in the city’s tax system.
To understand whether this inequity continues, Furman researchers first examined recent property tax data on Class I properties (1-3 family homes) and how average effective tax rates correlate with neighborhood demographics. They found that even in recent years, homeowners in areas with predominantly Black residents pay a larger effective tax rate than homeowners in predominantly white areas.
Furman researchers estimated that if all homeowners were subject to the citywide average effective tax rate during Fiscal Year 2018, homeowners in neighborhoods with the largest Black population would have paid about $17 million less in property taxes per year, while the quartile with the smallest Black population would have paid $10 million more.
The Furman article noted that:
The results of this analysis suggest that Black homeowners pay a larger effective tax rate than homeowners of other races, particularly white homeowners. Our analysis paints a stark picture of the systemic inequities embedded within New York City's property tax system. Residents in neighborhoods with higher shares of Black residents are disproportionately burdened with higher effective property tax rates compared to their white counterparts. This disparity not only violates the principles of Equal Protection and Fair Housing laws but also contributes to deepening the divide in housing affordability, placing a heavier financial burden on Black households and potentially affecting the long-term value of their properties. This analysis suggests Black homeowners pay a larger effective tax rate than white homeowners. The disparity violates Equal Protection and Fair Housing laws and contributes to housing affordability divides, placing a heavier burden on Black households.
Reply