A new payment system introduced by New York City to streamline property tax payments has instead caused headaches for residents and building owners.
The Property Tax System, which is overseen by the city’s Finance Department, overcharged building owners who were eligible for the 421a tax abatement, according to the New York Post. The issue came to light after some owners realized they were incorrectly billed in June.
The new system was rolled out at the start of the year, and can be accessed by building owners using their phones with a mobile app. In 2013, the city reportedly paid a Texas firm, Tyler Technologies, $18.4 million to design the program.
But the city’s Finance Department reportedly dismissed the overcharging as a minor technical issue, and noted that service requests have declined in the past year.
“There are no systemic issues with the system. It’s a grand success. This is a big, big, big success,” Jackie Gold, a spokesperson at DOF, told the outlet. “Of course, there’s always going to be some minor little technical issues that happen, but we work through them. We’re working through them and at the end of the day everybody’s going to get the full exemptions that they’re entitled.”
But tax experts warned that it is too early to tell just how many residents overpaid. The incorrect billing could also extend to commercial and industrial abatements, the Post reported. [NYP] — David Jeans