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We just purchased a home and the taxes are much higher than we initially thought they would be (previous owners had enhanced STAR). I have been going on the various websites for Nassau County, Town of Hempstead, and Village of Lynbrook and its all quite confusing.
I checked the home's assessment on-line and its assessed at much higher than my mortgage company assessed it at and what I actually paid. Do I need to contest the assessment or will it automatically be reassessed because of the recent sale?
When do I need to file the grievance? Do I use the AR1 form or is it easier to file on-line? If the grievance is accepted, how long does it take for it to be adjusted (since I pay taxes through mortgage)?
We just purchased a home and the taxes are much higher than we initially thought they would be (previous owners had enhanced STAR).
Do I need to contest the assessment or will it automatically be reassessed because of the recent sale?
When do I need to file the grievance? Do I use the AR1 form or is it easier to file on-line? If the grievance is accepted, how long does it take for it to be adjusted (since I pay taxes through mortgage)?
Any assistance or advice is appreciated.
Thanks,
Karen
Karen, you're dealing with two items here, STAR and assessment.
1. Here is a link to the NYS STAR reduction application in PDF format:
unless at least one of the owners is 65 or older by the end of 2009, page two is irrelevant (for the senior/enhanced exemption there are also income limitations, as stated on the form).
Print and fill out the form and submit to your local assessor's office. Call and find out what the deadline is, so you don't miss it. When it goes into effect depends on when your new (school) tax bills are issued (Nassau is different from Suffolk).
Your RE agent should have given you the information regarding actual taxes but as we all know, not all RE agents do their job...
2. Nassau did a complete County re-assessement not too long ago, but no, they do not re-assess automatically when a house is sold. If you feel your taxes are too high, you need to take the initiative and apply for a reduction. Your local assessor's office will have the appropriate forms (if you decide to do it yourself); they can also tell you when the deadline is.
Here too, the effective date depends on when tax bills are issued; your assessor's office will have this answer as well.
Thanks, that helps a bunch! There was no RE agent because I bought FSBO, but luckily the sellers told me about the STAR so I've got that paperwork ready to go. When I bring it in to the assessors office I'll ask about the forms for grieving taxes.
One thing to keep in mind about the assessments and the taxes, is that the taxes are based off the assessment of two years prior. For example the 08 taxes are based off the assessed value of Jan 06. Your 09 taxes will be based off the assessed value of Jan 07, and so on. This could help explain why the assessed value is so much larger than what it was recently appraised and bought at, because if your looking at the 08 taxes, and the assessed value used to arrive at those taxes, it is based off the value of Jan 06. If your looking at the last assessment given for the property (which would be for the 2010 taxes) it was from this Jan, property values have fallen quite a bit in the last 11 1/2 months, so the value of the property, what it was recently appraised and bought at is obviously not going to match what it was assessed at in January.
What I would look for is the Jan 09 assessment figures, which you should be getting in a few weeks. You would likely have a stronger case in making that challenge for the assessment and appraised value not matching up than challenging older assessments to the last appraised value since the older assessments came from when the market was in better shape, and during a period your home was worth more than it was at the appraisal.
One thing to keep in mind about the assessments and the taxes, is that the taxes are based off the assessment of two years prior. For example the 08 taxes are based off the assessed value of Jan 06. Your 09 taxes will be based off the assessed value of Jan 07, and so on. This could help explain why the assessed value is so much larger than what it was recently appraised and bought at, because if your looking at the 08 taxes, and the assessed value used to arrive at those taxes, it is based off the value of Jan 06. If your looking at the last assessment given for the property (which would be for the 2010 taxes) it was from this Jan, property values have fallen quite a bit in the last 11 1/2 months, so the value of the property, what it was recently appraised and bought at is obviously not going to match what it was assessed at in January.
What I would look for is the Jan 09 assessment figures, which you should be getting in a few weeks. You would likely have a stronger case in making that challenge for the assessment and appraised value not matching up than challenging older assessments to the last appraised value since the older assessments came from when the market was in better shape, and during a period your home was worth more than it was at the appraisal.
Excellent point!
However, it varies from town to town - Huntington looks at the value as of July 1st.
Thanks everyone for the info. Although, this all might be moot since I just heard that our esteemed Governor is proposing tax increases and wants to do away with STAR. Sheesh!
That is not permitted. They can not raise your taxes based upon a grievance.
Thanks Tom .. that's good to know.
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.. that's good to know.
