Property tax assessments can violate Fair Housing Act if disproportionately high in communities of color

The New York Court of Appeals has held that a municipal tax assessment practice may violate the federal Fair Housing Act, 42 U.S.C. §3601 et seq.. if assessments are higher without justification in areas of the city disproportionately inhabited by non-white residents. Tax Equity Now N.Y., LLC v. City of New York, 2024 WL 1160498 (N.Y. 2024). The court also held that these practices may perpetuate segregation. Both the disparate impact because of race and ethnicity and the perpetuation of segregation constitute prima facie claims of disparate impact discrimination under federal regulations. As a factual matter, the trial court found that similar properties in comparable neighborhoods were being assessed at extremely different rates.