41 Kew Gardens Rd. Assocs. v. Tyburski, 70 N.Y.2d 329 (1987)
A city’s local law requiring income-producing property owners to furnish income and expense statements for real property assessment is a constitutional exercise of its home rule power, as it relates to the preparation of assessments, and is not inconsistent with state law.
Summary
This case addresses the constitutionality of New York City’s Local Law No. 63, which mandates that owners of income-producing properties submit income and expense statements to the Commissioner of Finance for property tax assessment. A group of property owners challenged the law, arguing it exceeded the city’s authority and violated equal protection. The Court of Appeals reversed the lower courts’ rulings, holding that the local law is a valid exercise of the city’s home rule power and does not conflict with state law. The court emphasized that the law aids in the preparation of accurate property assessments, a power delegated to the city by the state constitution and statutes.
Facts
New York City enacted Local Law No. 63, requiring owners of income-producing property to file annual income and expense statements with the Commissioner of Finance. The law included exemptions for smaller property owners based on assessed value or number of units. Failure to comply could result in fines. A previous, similar law (Local Law No. 24) had been invalidated due to improper notice during its enactment. The city argued the data was crucial for accurate property valuation using the income capitalization method. Property owners challenged the law, arguing it was an overreach of the City’s power.
Procedural History
Property owners and real estate associations filed a declaratory judgment action challenging the validity of Local Law No. 63. The trial court granted summary judgment to the property owners, invalidating the law. The Appellate Division affirmed. The City appealed to the New York Court of Appeals.
Issue(s)
Whether New York City’s Local Law No. 63, requiring income and expense statements from property owners for assessment purposes, is a constitutional exercise of the City’s home rule power and consistent with the New York State Constitution and general state laws.
Holding
Yes, because the local law is a valid exercise of the City’s home rule power to prepare property tax assessments and does not conflict with the State Constitution or general state laws. The classifications drawn for gathering information are rationally based and related to the valuation process.
Court’s Reasoning
The Court of Appeals found that Article IX, § 2 (c) (ii) (8) of the State Constitution and Municipal Home Rule Law § 10 (1) (ii) (c) (2) grant the City express authority to enact Local Law No. 63, as it relates to the