Nassau Tax Assessments are Frozen - but are they correct?

The Nassau Assessor has again failed to correct assessments that are too high and instead uses the same assessments that were used for the 2020/21 tax year.

Due diligence and simple protections require the new 2023 assessments to be checked to see if they are correct; assessments are only part of the tax picture as the ratio of assessment to market value changes almost every year and the Covid pandemic has certainly changed values.

The tax rates have risen dramatically since the 2020 re-assessment and even if the assessment stays the same the taxes might be higher.

That is why it is important to have the assessment checked during this filing period now open until April 30, 2022 with an experienced tax certiorari attorney.

Stay alert for correspondence from the Assessor and stay safe.

The Nassau County Real Estate Tax Assessment Fiasco

 

Nassau County does not assess commercial and residential properties at full value. That would be too transparent and taxpayers would really know how the Assessor values the property. Instead, the Nassau Assessor, from time immemorial, uses a ratio of assessment to market value. Even the ratio of 1% that they show on the web site has now been changed for purposes of filing a complaint to the assessment.

After several years of no change for Nassau assessments, every property was re-assessed. Not only a new assessment but a new ratio of assessment to market value. Many properties that had been granted assessment reductions, were re-assessed at a higher value and many properties that had not been granted assessment reductions were re-assessed at a lower value. Having a lower assessment does not mean that the assessment is now correct you can still protest the assessment.

Generalizations do not work when correctly valuing over 430,000 distinct and different properties regardless of a re-assessment increase or decrease. Most properties paid a higher school tax this October 2021 and will most likely have a higher tax in January. Yes, tax rates increase almost every year but that does not mean you have to simply pay that tax without making sure the assessment is correct.

The only way to protect yourself from higher taxes, in the future, is to protest your assessment this January with a reputable experienced tax attorney.

Where is My Nassau County Tax Refund?

Recently newspaper headlines in Nassau County have focused largely on the mass rounds of government employee pay cuts and firings. According to the County, the blame for these pay cuts and firings is a $300 million budget deficit.

I understand that expenses have to be cut. However, this layoff scenario in the County Attorney’s Certiorari Department, Assessment Review Commission and Treasurer’s Department is a classic “kick the can down the road” to the next administration. Who will suffer? Certainly, anyone entitled to a tax assessment reduction/refund might not have the wherewithal to wait for relief. Try and tell the mortgage company or the tax receiver “I expect to get an assessment reduction and refund, my attorney settled the case. However, it will be several years until I receive my refund. Can you wait?”

The failure of the Nassau County Legislature and Administration to work with NIFA in accepting over $100 million dollars in bonds to pay off the judgments ordering real estate tax refunds is not only disgraceful, it makes very little sense. Why would the County not want to payoff these interest earning judgments as soon as possible? The slower the real estate tax refund process is, the higher will be the ultimate payout because of the interest accrued. Wouldn’t the County rather spend their money some other way than just paying off interest due? Doesn’t the tax payer deserve their refund immediately?

GREAT ASSESSMENT NEWS!

Most municipalities, including Nassau County, assess properties at a fraction of its estimated fair market value. The Nassau County Assessor has claimed for the past several years to be assessing commercial properties at 1% of its fair market value. However, we have just entered into an agreement with the Nassau County Attorney’s Office to negotiate the 2011/12 and 2012/13 assessments as though the assessments are based on .905% of the actual fair market value.

What exactly does this mean?

If a property is assessed at 10,000, the County Assessor’s website would claim a fair market value of $1,000,000. However, due to the agreement mentioned above, the County Attorney’s Office will negotiate tax reduction proceedings as if the property is assessed as worth $1,105,000.

Thus, if the property is really worth $1,000,000, and the County agrees to negotiate as if the property is assessed at $1,105,000, then the taxpayer would get a 10% reduction in assessment to bring their estimated fair market value down to $1,000,000.

The moral of this story … there is more than one way … to get a tax reduction.

NASSAU REAL ESTATE TAX ASSESSMENTS IN TURMOIL

Many Nassau County tax assessments have been reduced, but beware! Tax rates will have to be increased to meet the budgets. Almost daily we see a news story or opinion article on the outdated and broken Nassau County real estate tax assessment system. The probable take over of Nassau finances by NIFA (Nassau Interim Finance Authority) exacerbates the situation. Recently the County Executive announced a private appraisal firm would negotiate the real estate tax protests with the tens of thousands of homeowners complaining about their assessments. The administrative review of the commercial cases has all but stopped. There is a lot going on but so far the system has become more complicated and cumbersome. Maybe that's the plan.

Busy, Busy, Busy...

A few days ago, Newsday announced my election to the Garden City Chamber of Commerce Board of Directors. My phone has been ringing off the hook with congratulations. Aside from the congratulatory wishes, I have also been getting calls from my clients.

Nassau clients are asking if their taxes are being reduced as a result of our January protest filing. Unfortunately, it is too soon to tell. Suffolk clients are asking if I can lower their taxes by the May 18, 2010 grievance filing deadline. Unfortunately, we cannot lower the taxes before the filing deadline because we have to give Suffolk Assessors a chance to review the grievance applications. Suffolk assessments have stayed fairly consistent, despite numerous foreclosures. Against all common sense, many of the Southampton assessments have been greatly increased.

Luckily, I have a great staff working full throttle during this busy tax system to meet everyone’s needs. The only thing more I can ask for is the weather to hold out for golf this weekend.

Correcting Nassau County Assessment Errors

On Sunday March 21, 2010, Newsday featured a lengthy article about Nassau County’s substandard real estate tax assessment system. It was an extremely unflattering story and, unfortunately for Nassau County real estate taxpayers, it was all true. Nassau’s assessment system is broken and has been in disarray for many years. There are over 420,000 individual parcels in Nassau County, yet the County does not have the infrastructure to value them correctly. There are several different computer systems used in assessor’s office, frequently containing different information due to human errors made while inputting data from one system to another.

Examples of assessor’s office mistakes include the assessment of a half-acre parcel as a two-acre parcel, the assessment of a three bedroom split-level house as a five bedroom colonial house, etc. etc. etc. Some mistakes will have no affect on the real estate taxpayer because the assessment, despite erroneous descriptions, can still be based on the correct market value. However, some mistakes can result in unrealistic market values and inflated real estate tax bills. The good news is that these mistakes can be corrected, even if a protest was not filed prior to this years March 1, 2010 deadline.

Everyone paying real estate taxes for property in Nassau County should click here to verify the County’s description and compare your assessments to your neighbor’s. It only takes a few minutes, and in the end could save you $$$.