By Damian J. Troise
The figures released by the Nassau County Assessor on July 10 are based on last year's county budget and a new property assessment formula using market value. This new assessment formula will replace the current construction cost formula dating back to 1938.
This is not a future prediction of taxes because we do not know what the budgets are going to be next year, said Ben Nadola, of Cole, Layer, Trumble, which performed assessments.
The reason for Nassau County's first reassessment since 1938 is due to a court-ordered settlement. In 1997, Roosevelt residents sued the county, arguing that the current system overtaxed poorer homeowners.
The new statistics show how county taxes throughout Nassau may change, but county taxes only represent 20 percent of a homeowner's tax bill. On the average, school districts account for 65 percent and town taxes represent 10 percent. The impact on a homeowner's total tax bill will not be known until these budgets are adopted.
We know it's gong to have some effect, but we don't know whether it would be good or bad, said Dr. Mark Rosenbaum superintendent of Lawrence Public Schools.
The reassessments will be finalized in January of 2003 and will be reflected on school tax bills by October of 2003. It will not be used in the general tax bill until January 2004.
Homeowners in the Five Towns will receive tax-impact letters the week of Aug. 1 outlining their property's new full market value and an estimated assessed value. Condo, co-op and commercial property owners will receive letters in late August.
The new assessment will use the full market value of individual properties and will be assessed at 1 percent of that value. If a house is worth $400,000, then the assessed value would be $4,000.
The rate will vary depending on the taxing jurisdiction, such as, county, school or town taxes. Each will have a different rate depending on their budget requirements. If the school district had a budget of $1 million, then they would divide that by the total amount of all assessed properties. If there were 1,000 properties in the district all assessed at $4,000 each, then the district would divide $1 million by $4 million, equaling (.25) 25 percent.
The final step would be to multiply the rate (.25) by the assessed value of the home to figure out how much the tax bill will be for that home: .25 (25 percent) x $4,000 = $1,000
Property values will vary from village to village and street to street, meaning some homeowners might see an increase in taxes while others will see a decrease. Another unknown factor is the budget for respective school districts, villages, and the Town of Hempstead, as well as Nassau County.
Also, changes in state aid, reductions from exemptions such as STAR or veteran exemptions will also effect the tax rate and a homeowner's tax bill.
An increase in assessment value may not necessarily increase cost, said Nadola.
An assessment is really just a multiplier used in conjunction with tax rates to determine the tax bill for a property.
The net operating budget for a taxing jurisdiction, town or school, is a key factor in determining the tax rate. If the budget remains the same and assessment values rise, the rate must be reduced to collect the appropriate amount to meet the budget.
The process is intended to be fair and equitable which the system is not right now because we're going by 1938 numbers, said Leg. Michael Zapson (D-Long Beach). It's a good thing, it's going to solve a lot of problems.
Five Towners have until Nov. 15 to challenge the full market value assigned to their home. If you believe the figure in your letter is incorrect, make an appointment with a representative of Cole, Layer, Trumble by calling (516) 873-9701. After Nov. 15, you must file a formal grievance with the Nassau County Assessment Review Commission to protest.
