Help me understand please (Nassau: real estate market, how much, homes)

[maisy123]

If my school, village and town taxes are based on Nassau County assessments and these have decreased by 10-20% over the last 2 years when will we begin to see a decrease in our tax bills? I'm sure I'm missing something OR the county and state has no intention of lowering property and school taxes? What am I missing?

[dman72]

Originally Posted by maisy123

If my school, village and town taxes are based on Nassau County assessments and these have decreased by 10-20% over the last 2 years when will we begin to see a decrease in our tax bills? I'm sure I'm missing something OR the county and state has no intention of lowering property and school taxes? What am I missing?

Regardless of how they calculate it, they have no intention of lowering your taxes!! The most you can hope for is a freeze.

[Kbinspections]

Your assessment of your home may go down but they will raise the taxe rate to make up the difference.

[napjester666]

Originally Posted by Kbinspections

Your assessment of your home may go down but they will raise the taxe rate to make up the difference.

Will the rate only increase if too many people file for an assesment adjustment in an area or will the rate stay the same if I'm one of a few who goes thru the grievance process?
I ask because I assume the tax rate is the same for everyone in a given village and everyone's rate goes up and down together...

[Kbinspections]

The tax rate is the same for everyone, less exemptions, and the rate is set by how much money they need.

So if you do not grieve, you get hurt both ways.

Large developing in an area can lower the tax rate but that is unlikely.

[Smash255]

Originally Posted by maisy123

If my school, village and town taxes are based on Nassau County assessments and these have decreased by 10-20% over the last 2 years when will we begin to see a decrease in our tax bills? I'm sure I'm missing something OR the county and state has no intention of lowering property and school taxes? What am I missing?

The first part is what the specific municipality does with the taxes. the 2nd part is how the assessment change in your home compares to the assessment change in the specific municipality.

For example Nassau County has collected the same in property taxes for the past five years. Lets say the county does the same, and keeps the taxes they collect the same next year as they have in the past few years. Your taxes will be determined on how your assessment change compares to the assessment change average in the county.

For example if your assessment change dropped 5%, and the average in the county dropped 3%, you would see a decrease in your county taxes. if your assessment drop was 5%, and the county average drop was also 5% then your county taxes would not change. If your assessment drop was 5%, but the average drop in the county was 7% then you would see a slight increase.

The same was true during the boom years, even though what the county itself was collecting wasn't changing, if your home value was increasing faster than the county average your county taxes would increase, if the rise in value was in line with the county average the taxes would not change, and if you were increasing in value, but at a lower rate than the county average your taxes would decline

The same holds true across the other jurisdictions/ municipalities. It first starts with what that particular jurisdiction (county, town, school) is looking to collect. If is looking to collect more, less (unlikely), or the same as the year prior. Assessment in itself, regardless if it increases or decreases is not going to determine if your taxes increase or decrease. Its how the assessment compares to the average assessment in that particular jurisdiction and how that change in assessment compares to the average change in assessment in that particular jurisdiction.

[maisy123]

Originally Posted by Smash255

The first part is what the specific municipality does with the taxes. the 2nd part is how the assessment change in your home compares to the assessment change in the specific municipality.

For example Nassau County has collected the same in property taxes for the past five years. Lets say the county does the same, and keeps the taxes they collect the same next year as they have in the past few years. Your taxes will be determined on how your assessment change compares to the assessment change average in the county.

For example if your assessment change dropped 5%, and the average in the county dropped 3%, you would see a decrease in your county taxes. if your assessment drop was 5%, and the county average drop was also 5% then your county taxes would not change. If your assessment drop was 5%, but the average drop in the county was 7% then you would see a slight increase.

The same was true during the boom years, even though what the county itself was collecting wasn't changing, if your home value was increasing faster than the county average your county taxes would increase, if the rise in value was in line with the county average the taxes would not change, and if you were increasing in value, but at a lower rate than the county average your taxes would decline

The same holds true across the other jurisdictions/ municipalities. It first starts with what that particular jurisdiction (county, town, school) is looking to collect. If is looking to collect more, less (unlikely), or the same as the year prior. Assessment in itself, regardless if it increases or decreases is not going to determine if your taxes increase or decrease. Its how the assessment compares to the average assessment in that particular jurisdiction and how that change in assessment compares to the average change in assessment in that particular jurisdiction.

Thanks!

[Smash255]

Originally Posted by maisy123

Thanks!

Your welcome. I know I was a bit wordy with that response, and it may have not been the easiest to fully comprehend, so if you have anymore questions feel free to ask here or by pm.

[maisy123]

Originally Posted by Smash255

Your welcome. I know I was a bit wordy with that response, and it may have not been the easiest to fully comprehend, so if you have anymore questions feel free to ask here or by pm.

Your explanation was easy to comprehhend. Thanks again. I recieved my new assessment yesterday and my home actually increased in value by $50,000. With the real estate market as is I don't get it. Shouldn't they increase the assessment rate per 100 as opposed to the homes value if they are looking to increase taxes?

[Smash255]

Originally Posted by maisy123

Your explanation was easy to comprehhend. Thanks again. I recieved my new assessment yesterday and my home actually increased in value by $50,000. With the real estate market as is I don't get it. Shouldn't they increase the assessment rate per 100 as opposed to the homes value if they are looking to increase taxes?

The reason this occured is likely due to a 6% yearly cap is assessment and a 20% cap on assessment increase over a 5 year span. While the last couple years the market has declined, we had several years of double digit value increases. This resulted in what at times was pretty large differences between what the home was assessed at and what it was actually worth. So what the increase is likely due to is that the gap between the assessed value and the actual value, which was large in years past is closing.

the cap I believe was put in effect in 03.

For example if your home was assessed and valued at $400,000 in 03, due to those double digit increases in value we had by 06 it would have likely have been valued close to $600,000, but due to the caps on asssessment would have likely only been assessed at about $475,000 by 06. That $600,000 home may have decreased in value to around $560,000 over the last couple years, but since it was assessed at lower than the market value because of the assessment caps, the assessment will rise.