Low-Income Residents in New York Face Tax Inequity

Low-income residents and communities of color in New York City are suffering from severe disparities in the city’s property tax system. Due to outdated laws dating back nearly 50 years, home values and taxes are being assessed in ways that result in thousands of dollars of difference in tax bills for similar homes. This inequality is pushing many families to the brink of losing their homes.

Karim Hamilton, a resident of East Flatbush in Brooklyn, is one such victim. He is now fighting to save the home left by his mother. After losing his job, he fell thousands of dollars behind in property taxes. Shockingly, a home worth twice as much as his, located in another part of the city, is taxed $3,000 less than his.

“All I want is a roof over my head,” said Hamilton. “This home is what I want to pass on to my children and grandchildren.”

Numerous similar examples have emerged during investigations. Experts say the current tax system is governed by a law passed in 1980, which is now outdated and inherently discriminatory in today’s context.

“This system is complex, confusing, and fundamentally unequal,” said Isaiah Thompson, a senior analyst at the Community Service Society of New York. “It has harmed poor and minority communities for decades.”

City Finance Commissioner Preston Niblack acknowledged the issue: “We’re working to make the system fairer. The inequities have been known for years. We’ve recently started efforts with authorities in Albany to reform the law.”

However, for those impacted, discussions and plans offer little relief. If taxes aren’t paid, names are added to the “tax lien sale” list — a step that can eventually lead to home foreclosure. Karim Hamilton was once on that very list.

Analysis shows that in 2019 and 2021, 76% of those on the lien list were residents of minority neighborhoods.

City officials say they’ve introduced two major changes this year: an easier process to remove names from the lien list, and a new installment plan to pay off taxes. By using this opportunity, Hamilton was ultimately able to save his home.