TAX & BANKRUPTCY LITIGATION
CHIEF Rita Dumain DEPUTIES Lisa Bova-Hiatt, Vincent D’Orazio
The Tax & Bankruptcy Litigation Division plays a vital role in protecting the City’s ?scal health by defending court
challenges to real property tax assessments and by advancing initiatives to modernize the City’s infrastructure and
enhance the quality of life for City residents. The Division actively acquires property for a variety of projects such
as completing the City’s Third Water Tunnel, creating parks, constructing libraries, and building affordable housing.
Additionally, the Division litigates various tax issues and matters related to property acquisition, and defends the
City’s interests in bankruptcy proceedings.
American Airlines Hotel Tax Exemption Case
In an action brought against the City, American Airlines sought a refund for hotel room occupancy taxes it paid during 2002 and 2003.
This tax contains an exemption for personal residents, or occupants of a hotel room or rooms for at least 180 consecutive days. Airlines
often reserve many rooms in a hotel for their crew, and American Airlines claimed it should be exempt from taxes it pays on all rooms
(including ones used less than 180 days per year) because a given member of its staff is always staying in at least one of its rooms. A
mid-level appeals court upheld the City’s position, refusing to give the airline a refund for any occupancy of less than 180 day duration,
a large portion of its tax bill. This affirmed a 2009 decision by the New York City Tax Appeals Tribunal.
Defending An Eminent Domain Challenge to Urban Renewal in Harlem
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