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Mostly Cloudy Valley Stream seeks to curb assessment refunds
In an effort to curb rising costs for tax refunds, Valley Stream officials are looking to settle property assessment challenges quickly with commercial property owners.
Successful assessment challenges will be costing the village about $1.8 million this year, more than double what was budgeted for 2010-11. A property’s tax bill is based on it’s assessment, and when the value of the property goes down, so does its taxes.
Many of the challenges are filed years before they are settled, and the new assessment figures are retroactive, meaning the village must pay back what it over collected in taxes during that time period. Usually, the village and property owner negotiate a refund. The biggest refund for this year will top out at $424,000 for Vordano Realty for property at the east end of the Green Acres property on Sunrise Highway.
Three other property owners are getting six-figure refunds from the village, with another two dozen getting refunds between $3,000 and $58,000. Residential property refunds are costing the village about $339,000 this year.
And more is in the pipeline. Long Island American Water was just awarded $820,000 for four parcels for a challenge dating back 12 years. The money will be paid out over three budget years beginning in August.
Valley Stream Treasurer John Mastromarino said this year was an anomaly for the village, and the past few years it was paying back less than $1 million annually in tax refunds. However, he said it is a level the village can no longer sustain.
Right now, the village typically settles with a property owner after a settlement is reached with Nassau County for all other taxes. Since the village assesses property separately, it also settles separately. Mastromarino proposes that as soon as a commercial challenge is filed, the village look to reduce the property’s assessment right away. This will avoid a costly refund, he said.
But the village wouldn’t just lower a property’s value because the owner says so, Mastromarino said. He would want to bring in a professional appraisal firm to determine if and what a lower assessment should be, then try to strike a deal with the owner.
