New York Supreme Court Finds Finance Department Incorrectly Classified Taxpayer’s Property

The New York Supreme Court ruled in favor of a taxpayer, overturning the New York City Department of Finance’s decision that denied the taxpayer’s request to reclassify his property from Tax Class 4 to Tax Class 1. The taxpayer owned two adjacent properties: one was a residential home, and the other was a vacant lot with a garage. From 2018 to 2024, the Department classified the vacant lot as Tax Class 4 commercial property, despite its residential zoning and proximity to the taxpayer’s home. The Supreme Court found the Department’s classification to be arbitrary and capricious, ruling that the property ...