Chair Lee questions OMB on property tax reform timeline and tax lien sale

Okay, property tax increase and reform.

I'm glad you said it's inequitable.

As we know, the property tax system is inequitable.

And the executive plan...

Sort of

And I'm glad also that you are not including it in the executive plan for the property tax increases.

But as you sort of have been thinking through looking at property taxes, right, what insights has this process so far in the budget given in terms of where changes need to take place?

So I think we've said before, we'll continue to say, I think it's near universal agreement that the property tax system is inequitable.

We know that we need reform.

We are working on a reform proposal that largely builds on the recommendations of the Advisory Commission on Property Tax Reform.

Established by former Mayor de Blasio and former Speaker Johnson.

So we are making sure that we're looking at not only the structural recommendations that are included in those findings from the commission, but also looking at homeowner relief programs, taking a holistic view.

We know that, you know, looking at other classes of properties, we're looking at the multifamily properties, large rentals, commercial properties.

So we are taking a comprehensive, holistic view.

On property tax reform because that's what's needed to address the system.

And we're working on that proposal to be able to introduce in the state legislative session in the next year.

Oh, in the state, okay.

In the next state legislative session.

Got it, okay.

Because I know that this year in Albany, I think you had mentioned that we

The proposal would be released in weeks, which was in February, but did you mean for next year?

Because we're just trying to get a sense of when the timeline is.

Yeah, I think we're definitely working on the proposal.

Again, we're taking a comprehensive view, and we look forward to being able to have a proposal that is ready for action in Albany next year.

Okay, great.

And will the tax lien sale remain paused until after the property tax reform gets accomplished?

The tax lien, we paused the 2026 tax lien sale.

As you know, we are initiating, or in the middle of, I should say, a six-month review on tax liens.

At the same time, we know that per legislation that has been passed earlier this year, there are all kinds of different...

You know, policy looks, policy changes that could be made, including the utilization of land banks.

And so we are looking at that to be able to have an alternative pathway to what we've seen in terms of the lien sale, which is a program that's in need of reform.

Okay, so what I'm hearing, if I'm understanding correctly, is that you would pause it until the– do you want it to go hand-in-hand with the property tax reform?

Is that what you're saying?

Or you would– Not necessarily– I mean, it's–

It's related in the sense that it's both property tax, but the steps that we're taking on both sides, it's not really interrelated in that same way.

Right.

So the six-month review is what we're engaged in now.

Okay.

In terms of the tax lien sale and then the property tax reform proposal is also being worked on in parallel.

To the extent that the two will interrelate, we will obviously incorporate what our review lands.

Okay, so there is a chance that it will unpause, I guess, for next year.

The six-month review will dictate, and the recommendations from there will dictate how we move forward.

Okay.