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Nassau County did a press release yesterday that they will reassess 100% of properties by 1-1-2016 for assessment purposes and this will impact your 2018 taxes either positive or negative depending if your assessment is going up or down.
The release stated they have not done the reassessment in five years. Partially cause Ed Mangano laid off around 65 folk in the Nassau County Assessment dept.
The related article in Newsday also pointed out on average 70% of folks win tax grievances and some folks for whatever reason never grieve. The result is Nassau just adjusts the tax rate and shift the tax burden to the folks who never grieve.
End result 5 years without a reassessment identical side by side houses have significant tax difference between someone who won 5 years in a row vs someone who never grieved.
Either way buying a home now got more interesting. You have no clue which way your taxes are headed.
Folks who just bought a house this year with very low taxes as a result of being a serial griever who paid significantly above the assessed value may be in for a surprise. The assessor may count that sales price as your new assessed value.
So question if you just won several tax grievances in a row (as I did) will the county just 'reassess' back to what it was and then you are back to square 1?
This is the assessment system Mangano promised to reform 6 years ago, yet still borrowing $1M a year to cover challenges.
Going to be interesting whether they raise or lower assessments since owners who grieved received a stamp of approval from the county for their homes worth based on similar properties.
So question if you just won several tax grievances in a row (as I did) will the county just 'reassess' back to what it was and then you are back to square 1?
YES AND NO
Lets say you have a house worth 500K market value and you have it assessed at 300K due to multiple wins during tax grievance process.
So 1-1-2016 Nassau adjusts your market value to 500K but your assessed value wont be 500K.
NYS has a law assessed value can only be raised a maximun of 20% over five years. So your market value will go to 500k but your assessed value will be way lower.
At 4% year moving from a 300K assessed value to a 500K assessed value will take many many years.
So folks who are significantly under assessed have many years before taxes shoot up. However, your cheap taxes are not as valuable to next owner as that 4% a year keeps plugging away and they wont have cheap taxes forever.
Are there limitations on how much a residential assessment may increase from one year to the next?
Yes, for residential property in Class 1, the total assessment may not increase more than 6% in one year or more than 20% in five years. The restriction does not apply to increases resulting from construction or renovation.
Lets say you have a house worth 500K market value and you have it assessed at 300K due to multiple wins during tax grievance process.
So 1-1-2016 Nassau adjusts your market value to 500K but your assessed value wont be 500K.
NYS has a law assessed value can only be raised a maximun of 20% over five years. So your market value will go to 500k but your assessed value will be way lower.
At 4% year moving from a 300K assessed value to a 500K assessed value will take many many years.
So folks who are significantly under assessed have many years before taxes shoot up. However, your cheap taxes are not as valuable to next owner as that 4% a year keeps plugging away and they wont have cheap taxes forever.
Ahh ok thx for the info. In that hypothetical, can't you just challenge the new assessment and stop or slow the 4% increases?
Ahh ok thx for the info. In that hypothetical, can't you just challenge the new assessment and stop or slow the 4% increases?
Well you can only challenge assessed value not market value which makes it tricky.
For example, Nassau county takes your 300K home makes it 500K market value.
However, due to NYS rule that assessed value can only rise a max of 20% over five years and in any of those five years a max of 6% in a single year your new assessed value will be 318K.
So it will be Market value 500K
Assessed value = 318K then divide that by 400 = 795 for assessment purposes
So to grieve you have to find comps less than 318K. Grieving market value is not allowed as it does not effect your taxes. Heck even if you won unless you got market value below 318K your taxes wont change.
Well you can only challenge assessed value not market value which makes it tricky.
For example, Nassau county takes your 300K home makes it 500K market value.
However, due to NYS rule that assessed value can only rise a max of 20% over five years and in any of those five years a max of 6% in a single year your new assessed value will be 318K.
So it will be Market value 500K
Assessed value = 318K then divide that by 400 = 795 for assessment purposes
So to grieve you have to find comps less than 318K. Grieving market value is not allowed as it does not effect your taxes. Heck even if you won unless you got market value below 318K your taxes wont change.
Ahh ok, so depending on your new market value you may have to wait a few years for your taxes to catch up before it's worth grieving again.
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