Thursday, April 16, 2015
Caveat Emptor! Be careful of buying properties on the cheap without checking on the real estate taxes.
Protests to achieve reductions in the real estate tax assessments must be made well in advance of the tax bills. That is to give the Tax Assessor time to hold hearings and determine if assessment reductions should be made or if exemptions and abatements should be calculated. If you are buying a Nassau property in May 2015 you cannot file for assessment reduction until January 2016. That complaint is for the 2017/18 taxes. The first tax bill will be October 2017. That is almost 2-1/2 years after your purchase and possibly a much lower tax would be appropriate based on the reduced purchase price.
The Suffolk real estate tax situation is similar but the period to file a grievance is in May. Village tax complaints to reduce taxes are filed in various months and are usually based on different assessments.
Thursday, April 2, 2015
Tax Certiorari complaints to reduce the real estate taxes in Huntington, Babylon, Islip, Brookhaven, Riverhead, Smithtown, Southold, Southampton, East Hampton and Shelter Island are due May 1, 2015. Overall, the market value of Long Island residential and commercial properties are still suffering from the stigma of the Irene and Sandy storms.
Many commercial and residential taxes are going to increase as the budget problem persists. Every real estate tax assessment should be reviewed as tax rates and equalization rates change yearly
Thursday, October 16, 2014
The first half of the Nassau County school taxes were just sent out to every commercial and residential tax payer. Even if your real estate tax assessment did not increase since last year, your taxes increased.
The 2% cap passed last year is on the budgets, but if some assessments were decreased in your school districts, possibly by successful real estate tax reduction complaints, the tax rate increased more than the 2% cap. The next time you can protest Nassau County Real Estate taxes is in January 2015. Certainly, every tax bill should be checked for accuracy. If there was any construction or substantial property improvement, there are tax exemptions that can be applied for before December 31st.
Tuesday, February 4, 2014
The region’s tax burden tops every voter’s anxiety list and, almost without exception, Long Island’s elected officials have adopted the mantra of cutting government costs through a variety of mechanisms – tax caps, spending moratoriums, frozen capital improvements and the like.
These are but minor tweaks. What’s required is the genuine political will to adopt sweeping reforms that will make a strategic difference in our collective tax bill, such as the consolidation of neighboring school districts.
In examining just one program trumpeted as “tax reform,” the loopholes become apparent. When property owners take advantage of the reassessment process, the municipal revenue from that property is obviously reduced, forcing the taxing authority to make up the difference by increasing tax burdens across the board. The property owner who didn’t qualify for reassessment is subject to the financial version of double jeopardy: the overall increased burden plus an assessment that’s higher than those who successfully sought reductions.Yet the problem is even more complex. In Valley Stream, there is not one but three school districts. Own property on the wrong corner and your tax burden could be substantially higher than the owner across the street. Consolidation would bring sanity and cost savings, but no politician dares raise this issue: School district sovereignty has become inviolate across Long Island.
Other programs, such as the state’s 2 percent cap on tax increases, are equally porous reform measures, while the governor’s proposal to incentivize local government to consolidate services will be met with the same studied indifference that politicians offered a similar proposal by my law partner, John V.N. Klein, who recommended this kind of progressive initiative decades ago. Town supervisors pocket-vetoed that plan.
Gov. Andrew Cuomo has a number of other options, including tying property taxes to a homeowner’s income and ability to pay. But that could create the specter of widely fluctuating tax burdens that unseat local property values.The real means to end this crisis is a realization that the current property tax burden is simply unsupportable and consolidation is the only way to create genuine tax reform.
Thursday, January 16, 2014
On January 7th, Richard Fromewick was interviewed by reporter Lori Bordonaro of Channel 4 WNBC-TV on Gov. Andrew Cuomo's plan to cut taxes.
Click here to watch the video and read the full article.
Wednesday, September 4, 2013
As the cliché goes, “you can’t trust everything you read,” and a glaring example of that is your real estate tax market value.
If you look online at the official Nassau County website, mynassauproperty.com, the market value of your residential property claims to be based on .25% and for commercial property at 1%. However, properties are really assessed much higher. When the Assessment Review Commission (ARC) or court hearings are set, we as attorneys are able to prove the assessment is based on a higher market value. Don’t be disheartened if you see that the assessor has your home’s market value as extremely low because in fact, it’s really much higher.
The relationship between assessments and market value changes every year based on sales in the County. An assessment might stay the same but the market value that the County is using might change. If you think the assessment on your home or business was based on $500,000, you might be satisfied not to complain. But if you found out the assessment was really based on a $600,000 value, you might want to file a complaint. New Nassau County assessments will be ready the first week of January 2014. That assessment should be checked for accuracy by an attorney experienced with tax certiorari proceedings.
Thursday, June 20, 2013
There have been virtually no real estate tax refunds from Nassau County for the past two years. The refunds are due to residential and commercial taxpayers from Nassau County. The taxpayers successfully challenged their real estate tax assessments in tax certiorari proceedings. In some cases, the Assessment Review Commission (ARC) agreed to the over-assessments, while other proceedings were decided by hearing officers at Small Claims Assessment Review (SCAR) hearings. Any proceedings that could not be settled administratively were negotiated and settled with the Nassau County Attorney’s office. A relatively few number of cases went to trial and judgments were handed down by the Supreme Court demanding refunds. It has been estimated that almost $400 million in refunds with interest have accumulated as a debt still to be paid.
On June 24, 2013, the Nassau County Legislature will once again have on its agenda a bond proposal to create a fund for infrastructure repair due to Hurricane Sandy and to pay the tax refunds. Here’s hoping a tax certiorari refund program can be agreed to in a non-partisan way.