The property tax is the single most important revenue source for local governments and school districts in New York State. Its positive attributes are its stability, simplicity, efficiency, predictability, and its contribution to local government. Yet gross inequities are associated with assessment administration of property tax. An analysis of a 1973 equalization survey shows that only 6.8 percent of municipalities fall within plus-or-minus 20 percent accuracy of assessment. Without drastic reform of assessment administration, meaningful reform of the state-local system of educational finance will be difficult. Although there are alternatives to the full value standard of taxation, great problems stem from using these standards. No matter what standard is used, proper apportionment of property tax burdens is impossible without first determining full value of property. If a full value standard were implemented, the residential class would experience the greatest tax levy increase, although only 23.7 percent of all municipalities would be affected, and most of the dollar shifting would result from correction of intraclass inequity. If no changes are made, cases challenging improper overassessment will force school districts to pay refunds of improperly collected tax money. Thus an inescapable relationship between educational finance and New York real property tax administration exists. (Author/JM)