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Is there any way to tell what the tax impact would be for a finished basement with no bath/kitchen? Just a finished room.
The County does not release the formula that I know of, but basically what they do is assign a value to living floor space, outdoor space, deck, unfinished space, half bath, half bath fireplace, central air, etc. and add it up. So lets say that living floor space is worth $1, outdoor space $.20, deck $.25, unfinished space $.30, half bath ($10), full bath ($20), fireplace ($10), central air ($15) and keep in mind that I am making those numbers up, if you had a 2000 sq foot home with an illegal 500 sqft finished basement with a half bath and a fireplace, then your assessment might go from:
living floor space 2000 sqft x $1 = $2000
outdoor space 8000 sqft x $.20 = $400
deck 200 sqft x $.25 = $500
unfinished basement 500 x $.30 = $150
half bath 1 x $10 = $10
full bath 1 x $20 = $20
fireplace 1 x $10 = $10
central air 1 x $15 = $15
total: $3105
to
living floor space 2500 sqft x $1 = $2500
outdoor space 8000 sqft x $.20 = $400
deck 200 sqft x $.25 = $500
unfinished basement 0 x $.30 = $0
half bath 2 x $10 = $20
full bath 1 x $20 = $20
fireplace 2 x $10 = $20
central air 1 x $15 = $15
total: $3475
This is just illustrative as to how the assessor's office does it. I can't tell you the values are right though.
But this is why the people caught with illegal space will get dinged (per my last post). First, the 6%/20% cap will not apply. Second, the impact of school taxes will be felt because your value increases relative to others in your school district. Lets consider this illustration:
Lets assume there are 3 properties in Nassau County: Blackacre (in Garden City), Whiteacre (Oceanside), and Greenacre (Oceanside) and they are all assessed at $500,000 in 2016. The new Assessment in 2018 is as follows - Blackacre $1,000,000, Whiteacre $600,000, Greenacre $650,000 (of which $50,000 is illegal work increasing floor space).
In 2019, Greenacre's county taxes will skyrocket relative to Blackacre and Greenacre because the maximum taxable assessment will be as follows:
Blackacre: $530,000
Whiteacre: $530,000
Greenacre: $650,000
In that scenario, Greenacre will be paying nearly 7% more in county taxes than each of Blackacre and Whiteacre in 2019. Moreover, Greenacre will pay 10% more in school taxes than Whiteacre in 2019, as they both share the same district. Using my 70% school tax number from earlier and assuming that each household in Nassau County pays, on average, $70 in school tax, this means that the tax burden would be as follows:
Blackacre: $27.5 county, $70 school = $97.5 total
Whiteacre: $27.5 county, $65 school = $92.5 total
Greenacre: $35 county, $75 school = $110 total
Again, play with the numbers however you like, but this is why I say people with illegal additions or basements are going to get killed in taxes. Over time, the differential will reduce as Blackacre and Whiteacre catch up to Greenacre in assessed value, but the point remains.
The County does not release the formula that I know of, but basically what they do is assign a value to living floor space, outdoor space, deck, unfinished space, half bath, half bath fireplace, central air, etc. and add it up. So lets say that living floor space is worth $1, outdoor space $.20, deck $.25, unfinished space $.30, half bath ($10), full bath ($20), fireplace ($10), central air ($15) and keep in mind that I am making those numbers up, if you had a 2000 sq foot home with an illegal 500 sqft finished basement with a half bath and a fireplace, then your assessment might go from:
living floor space 2000 sqft x $1 = $2000
outdoor space 8000 sqft x $.20 = $400
deck 200 sqft x $.25 = $500
unfinished basement 500 x $.30 = $150
half bath 1 x $10 = $10
full bath 1 x $20 = $20
fireplace 1 x $10 = $10
central air 1 x $15 = $15
total: $3105
to
living floor space 2500 sqft x $1 = $2500
outdoor space 8000 sqft x $.20 = $400
deck 200 sqft x $.25 = $500
unfinished basement 0 x $.30 = $0
half bath 2 x $10 = $20
full bath 1 x $20 = $20
fireplace 2 x $10 = $20
central air 1 x $15 = $15
total: $3475
This is just illustrative as to how the assessor's office does it. I can't tell you the values are right though.
In your example you are treating finished basement space as the same as finished space in the rest of the house. I thought that it would be treated differently.
In your example you are treating finished basement space as the same as finished space in the rest of the house. I thought that it would be treated differently.
It is my understanding that the County does not treat finished basement space different that finished space on any other floor. I believe there is only finished and unfinished.
It is my understanding that the County does not treat finished basement space different that finished space on any other floor. I believe there is only finished and unfinished.
They do. My finished basement space is calculated on a different schedule.
Just like they calculate a garage and a unheated enclosed porch or open porch sf differently .
But you're also forgetting that, absent new construction, assessments can only increase by 6% a year or 20% in 5 years.
I've asked all over if the 6%/20% rule will hold in a county-wide reassessment and still have yet to get a firm answer from anywhere. That is a BIG deal and will be the difference between a mass exodus and people just biting the bullet and accepting the increase(s). 6% is doable. 40% or more will be the straw that breaks a lot of backs for good.
I've asked all over if the 6%/20% rule will hold in a county-wide reassessment and still have yet to get a firm answer from anywhere. That is a BIG deal and will be the difference between a mass exodus and people just biting the bullet and accepting the increase(s). 6% is doable. 40% or more will be the straw that breaks a lot of backs for good.
Its a State Law. Real Property Tax Law 1805(a), to be precise. It cannot be trumped simply by declaring a County-wide assessment.
Its a State Law. Real Property Tax Law 1805(a), to be precise. It cannot be trumped simply by declaring a County-wide assessment.
They already said they are over-riding the 6% rule. You just need an exemption of some sort. They did it last time they did a big county wide assessment.
They already said they are over-riding the 6% rule. You just need an exemption of some sort. They did it last time they did a big county wide assessment.
Who said that? The State law is pretty clear on this point.
I think what you are talking about the is mathematical gymnastics Nassau County government continues to use to screw the taxpayer. It doesn't require an "exemption". Briffel v. County of Nassau is required reading. Basically the County government avoids the functional result of the 6% limitation by manipulating the fractional assessment percentage as follows:
Lets assume that a $500,000 property (Blackacre) is reassessed at $1,000,000. Lets further assume that Whiteacre is a a $500,000 property (Blackacre) is reassessed and remains at $500,000.
In Year 1 (pre-reassessment):
-Blackacre: $500,000 fmv assessment x 2% (universal fractional assessment percentage) = $100,000
-Whiteacre: $500,000 fmv assessment x 2% (universal fractional assessment percentage) = $100,000
Thus, in Year 1, Blackacre and Whiteacre's fractional assessment (each $100,000) is equal and their share of County taxes would be equal also.
But look how the County cheats Blackacre in Year 2 (post-reassessment)
-Blackacre: $1,000,000 fmv assessment x 1% (universal fractional assessment percentage) = $100,000 fractional assessment
-Whiteacre: $500,000 fmv assessment x 1% (universal fractional assessment percentage) = $50,000 fractional assessment
So, in Year 2, Blackacre's share of tax liability for County taxes will be double (!) that of Whiteacre. What about the 6% cap you ask? Well, the County claims that Blackacre's fractional assessment ($100,000 in Year 1 and Year 2) has not increased by more than 6%, so they have complied with the statute. And they are technically right, although the real-world result totally eviscerates the point of the 6% limitation.
Of course, this is only achieved by manipulating the fractional assessment percentage, which is just a multiplier arbitrarily used by the County. Originally, it was used to make things simpler, but after a discrimination settlement in 2000(ish), the County government expressly agreed to reduce it for the express purpose of functionally circumventing the 6% limit.
Who knows if they will do it again this re-assessment, but they pretty much reduce the multiplier every year to cheat the taxpayer, albiet just a little bit. That's why the multiplier has gone from .20 to .19 this year.
The short answer to this problem is to complain to your legislator.
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