A lawsuit has been filed against a New York State tax law that plaintiffs claim unfairly burdens local municipalities and their residents.
Plaintiffs Robert T. Kennedy, Mayor of the Incorporated Village of Freeport, and the Village Board of Trustees brought a complaint against the State of New York, its Senate, and Assembly, alleging that New York State Real Property Tax Law § 736(2) violates constitutional rights under the Fifth and Fourteenth Amendments.
According to the complaint, the statute denies municipalities equal protection and due process by preventing them from appealing adverse determinations in Small Claims Assessment Review (SCAR) proceedings. These proceedings allow property owners to contest real estate tax assessments but provide no mechanism for municipalities to appeal decisions made by hearing officers. The filing seeks injunctive relief to block enforcement of the statute.
The lawsuit describes instances where SCAR determinations allegedly resulted in errors that increased the tax burden on Freeport residents without an opportunity for correction or appeal by village officials. The plaintiffs claim these errors include miscalculations and procedural irregularities that shifted tax liabilities among property owners. Exhibits attached to the complaint cite cases in which hearing officers allegedly made unauthorized adjustments or failed to properly sign their determinations.
The complaint further alleges that under Article IX of the New York State Constitution, Mayor Kennedy has a duty to safeguard public health and safety, which is hindered by Real Property Tax Law § 736(2). The plaintiffs argue that the law limits their ability to ensure fair taxation practices within the Village of Freeport.
The plaintiffs seek declaratory judgments declaring Real Property Tax Law § 736 unconstitutional under the due process and equal protection clauses of the Fifth and Fourteenth Amendments, as well as any other relief the court deems appropriate.
The plaintiffs are represented by attorneys Keith M. Corbett and Gabriella S. Amato of Harris Beach Murtha Cullina PLLC. The case was filed in the United States District Court for the Eastern District of New York under case ID 2:25-cv-05438.