Thursday, November 17, 2016

Why Do My Nassau Property Taxes Go Up, Up, Up

Why were the Nassau School Tax bills higher than ever?

There are three reasons:
  1. School budgets continue to increase, higher than the 2% NYS cap; 
  2. There are precious few properties being built, therefore, virtually no new assessments are being added to the tax roll; and 
  3. If there are assessment reductions in the district and no new assessments added, then it’s simple math that tax rates have to increase. 
For example: If the total assessments in a district decreased from $1,000,000 to $900,000 because some properties received assessment reductions, the tax rate has to increase by 11% just to get the same money. And, on top of that the budget has to increase.

In fact, in the town of Hempstead School District 27 the commercial taxes increased over 13%. The residential tax rate increases averaged 5%. The (DAF) Disputed Assessment Fund which affects only commercial properties was on this October’s school tax bill and unexpectedly decreased the taxes payable. Be prepared, there will be an increase for the DAF on the general tax bill.

The next protest period in Nassau and New York City is in January and the Suffolk protests are in May.

Wednesday, November 2, 2016

Nassau Commercial Tax Bills (DAF)

If you own commercial property, your new October school tax bill probably has a lower tax then last year because the Disputed Assessment Fund (DAF) reduced the taxes payable.  Everybody thought the DAF was to be an additional tax to build up a refund bucket. However, the Disputed Assessment Fund charge was a reduction on the tax bills.  The Assessment Department has not explained why a charge resulted in reducing the tax payable.  What will happen on the January 2017 general tax bill is anybody’s guess. As a Tax Certiorari lawyer who files for commercial clients, I am mindful of real estate taxes. This unexpected decrease in school taxes might be welcome in the short run but I am concerned that there will be a large increase in commercial property taxes in the coming year. I will continue to reach out for information on the DAF taxes.  Of course, the school taxes increased for Nassau residential properties.