New York state and New York City can’t shake a legal challenge from a group of property owners and renters who say the city’s property tax system gives wealthy residents a break on their taxes while placing an unfair burden on those of modest means.

Acting Manhattan Supreme Court Justice Gerald Lebovits denied the city and state governments’ motion to dismiss, finding the plaintiffs, united in a group called Tax Equity Now NY, have standing to bring the suit and preserved due process claims against the two governments that the city’s tax burdens have no relationship to real market values.

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