Politics
NYC Ballot Measure on Co-op Tax Assessments Targets Upper East Side Property Costs
The referendum would alter assessment formulas for co-operative apartments, directly changing tax bills for residents along Lexington Avenue and Park Avenue.
How we reported this
The New York City ballot measure on co-operative housing tax assessments will go before voters in November 2026. It changes how the Department of Finance calculates market values for co-ops in Manhattan Community Board 8, which covers the Upper East Side. The change would replace the current income-based formula with a direct comparison to condominium sales data.
City officials placed the measure on the ballot after the 2025 fiscal year budget showed a $340 million shortfall in property tax collections from co-ops citywide. The Upper East Side contains more than 180 co-operative buildings, according to records from the Department of Finance. Residents have paid taxes under the older system since a 1990s state law set the formula.
Local Effects on Household Expenses
Upper East Side households would see their annual tax statements recalculated starting in tax year 2027. A typical two-bedroom co-op unit on East 79th Street currently assessed at $850,000 could shift to a new valuation near $1.2 million. Community Board 8 district manager data shows that 62 percent of local housing units are co-ops, so the adjustment would reach the majority of owners in the area.
Policy analysts at the Manhattan Borough President's office note that the new method aligns co-op taxes with recent condominium sales on Third Avenue. Local advocates note that buildings near the 86th Street subway station would face larger increases because of higher recent sale prices in that corridor. The legislation states that owners of units valued under $500,000 would receive a one-time credit of up to $1,200 in the first year.
The government says the policy will generate an additional $92 million annually for the city once fully implemented. The Department of Finance projects that 4,800 Upper East Side co-op units would see increases between $800 and $2,100 per year.
Next Steps for Voters and Assessors
Ballots will list the measure as Proposal 3. The Board of Elections will mail voter guides to every registered household in the 10021, 10028, and 10075 zip codes by October 15. If approved, the Department of Finance will begin mailing revised assessment notices in January 2027.