Budget Director Soliman tasked with restructuring notorious tax assessment process affecting all property owners
Zohran Mamdani’s campaign platform centered on restructuring New York City’s property tax system, widely recognized as one of the most inequitable tax mechanisms in American municipal governance. Budget Director Sherif Soliman, who previously served as Finance Commissioner under Bill de Blasio, inherits responsibility for implementing promised reforms. The system notoriously advantages large commercial and industrial properties while placing disproportionate tax burdens on small residential property owners.
The Inequity Problem and Historical Context
NYC’s property tax system divides real estate into four classes: residential (one-to-three family), residential (multifamily), commercial, and industrial. Residential properties pay effective tax rates roughly twice those applied to comparable commercial properties due to exemptions, abatements, and preferential assessment methodologies. Owner-occupied buildings receive 25 percent tax reductions through the Homeowner’s Exemption; cooperative apartment owners benefit from J-51 and other abatement programs unavailable to rental property residents. Commercial properties receive substantial preferential assessments that exempt them from tax calculations applied to residential parcels.
Mamdani’s Reform Proposals
The new mayor pledges “comprehensive” property tax reform but has offered limited specifics regarding implementation mechanisms, timing, or revenue implications. Property tax restructuring carries profound consequences for municipal budget stability, as property taxes represent approximately 45 percent of city tax revenue. Increases to commercial assessments could drive business relocation; increases to residential assessments risk accelerating gentrification and displacement in changing neighborhoods. For reform analysis, see Gotham Gazette’s property tax investigation, NYC Taxpayers Union reform framework, Curbed’s analysis of reform implications, and City and State’s explanation of system mechanics.
