No Proof of Racial Discrimination Affecting Tenants Under Tax System

Some African-American and Hispanic tenants of rental apartment buildings in the Bronx and Queens with 11 or more units in New York City sued to bring a class action against the city, claiming that the city’s real property tax classification system had a disparate impact on them. The court dismissed the complaint. Tenants appealed and lost. Tenants lack standing to challenge the tax classification system since they failed to show that they sustained an “injury in fact.” They didn’t identify where they lived, how much rent they paid, and what portion, if any, of their rent was attributable to landlord’s property tax obligation. They also failed to show that they paid a higher rent rate than they would have if their landlords received a more favorable property tax rate. Also, tenants weren’t the property owners and therefore didn’t directly bear the costs of the property tax burden placed on larger buildings. Their claim was speculative. There also was no claim that housing was denied or made unavailable to any of the tenants who sued. There was also no proof of racial discrimination as claimed by tenants.

Robinson v. City of New York: 2016 N.Y. Slip Op. 07083, NYLJ No. 1202771004673 (App. Div. 1 Dept.; 10/27/16; Mazzarelli, JP, Acosta, Richter, Kapnick, Gesmer, JJ)