How to Appeal Your Assessment (January 2007)

When will the assessments mailed out in November 2004 take effect? The Department of Assessment mailed Tax Impact Notices for its annual revaluation, which will be completed in January 2005. The new values will become final in April 2006 and will be used for the October 2006 school tax bill and January 2007 general tax bill.

What assessment will be used for bills that I get before October 2006?  The January 2005 general bill is based on the assessment that was final in April 2004. The October 2005 school bill and January 2006 general bill will be based on the assessment that becomes final in April 2005. 

Were Tax Impact Notices mailed to all property owners?  No.  The Department of Assessment mailed notices only to owners of Class 1 property (one, two and three family homes, residentially-zoned vacant land and condominiums not less than three stories).

If I did not get a notice can I assume that next year’s assessment is the same as this year’s?  No.  Almost all assessments change every year.  Every property owner should look up his or her property’s assessment every year in January or February on the Department of Assessment web site or by calling 516-571-2031.

Are the values on the Tax Impact Notices subject to change? Yes. The Department of Assessment may change values on the January tentative assessment roll.  Check your property’s assessment in January on the Department of Assessment web site or by calling 516-571-2031.

Can the Department of Assessment make any changes to the tentative assessment after January?  Yes, for limited purposes.  Before the roll becomes final in the following year, the Department of Assessment may increase or decrease the total assessment or taxable assessment or change the property’s tax class if there are changes in eligibility for exemptions or construction or destruction of improvements. Any increase due to new improvements will appear on next year’s January roll.  Changes in exemptions may appear then or on the April final roll. 

How else may the tentative assessment change? If you file an Application for Correction, the Assessment Review Commission may reduce your assessment.

Will I receive a Tax Impact Statement next November?   Probably not.  The Department of Assessment may send impact notices only every few years.

How will I be notified of the new assessment for next year?  The Department of Assessment will publish the next tentative assessment roll on the web on the first business day in January. If the new assessed value is greater than this year’s assessed value, or if an exemption is removed, the Department of Assessment will send you a notice no later than mid February.  But do not wait for the notice.  Look up your assessment in January or February each year on the Department of Assessment web site. 

Can I look at the Department of Assessment’s information on my property? Yes. It is available from the Department of Assessment web site. If there are substantial errors in the information about your property, write to the Department of Assessment, 240 Old Country Road, Mineola, NY 11501.

Will the annual revaluation affect my school and town taxes? Yes. The change in assessments will shift tax burdens among taxpayers within your school district, town and other districts to which you pay taxes even if there is no budget increase. Some taxpayer's share of the total tax bill will go down; others will go up.

What about the County tax? For most homeowners the county tax is about 20% of the total property tax bill. The last increase, in January 2003, added about $300 to a typical homeowner's bill, except for low and moderate-income senior citizens who were exempted from the increase. The County budget for 2005 holds the total property tax at the same amount as for 2003 and 2004. However, as with the other tax districts, the County tax burden will be redistributed by the revaluation. As a result, most homeowners will see either an increase or a decrease in the county portion of their January general tax bill although the average amount remains unchanged.

Will this be the last time my assessment will change? No. The Department of Assessment will update values annually.

How does the Department of Assessment’s market value estimate affect what I pay in taxes?  If your property’s assessment grows faster than the average assessment of property in the same tax class and tax district, your share of the total tax bill will increase even if there is no change in the district’s budget.  But not every assessment increase will produce a higher tax; if the assessments of other properties grow faster than yours, your share of the tax burden will decline.

Does the tax class and taxable assessed value affect my tax bill?  Yes, the tax class determines which rates are applied to your property’s taxable assessed value.  A change in your property’s eligibility for exemptions may affect the taxable assessed value.

What else affects how much tax I pay? The budgets set by your school district, town, special districts and the County.

Should I be concerned if the Department of Assessment’s estimate is too low?  No.  A low estimate by the Department of Assessment’s will not affect your ability to get fair value for your house when you sell it or to get a loan.

What is a property tax assessment? An annual determination by the Department of Assessment, which consists of a total assessed value, taxable assessed values for school and general tax purposes, and a tax class designation.

How often is property assessed? Annually. A new tentative assessment is published on the first business day in January of each year.

I received a reduction from the Assessment Review Commission last year?  Why did the assessment go back up?  The Department of Assessment receives notice of all reductions granted by the Assessment Review Commission as they are made and considers them when it establishes its values for following years. However, the Department of Assessment is required to make an independent determination as part of its annual revaluation of all property, must bring values up to date with the current market and apply a consistent methodology that treats like properties alike.

Why did I get a new assessment before I received a determination on a protest I filed last year?  The Department of Assessment is required to revalue all property at the same time even if there is a pending challenge.  The assessment review process takes a full year to review all of the challenges and overlaps with the legal deadline for publishing the new assessments.  If you disagree with the new assessment as well, you should file an Application for Correction by March 1 even if you have not received a determination from the Assessment Review Commission on an application you filed last year.

VILLAGE AND CITY ASSESSMENTS

What if I live in an incorporated village? Most villages set their own assessments for village taxes. Contact your village assessor or clerk for more information.  The County assessment is used for school, town, County and special district purposes. 

Do any villages use the County assessments instead of setting their own?  Yes, If your property is in one of the following villages, your village taxes are based on the county assessment: Hewlett Neck,Hewlett Bay Park, Woodsburgh, Manorhaven, Munsey Park, North Hills, Plandome Heights, Plandome Manor.

What if I live in the City of Long Beach ?  Your school and County taxes are based on the County assessment.  The City of Long Beach sets its own assessments for City tax purposes.  There is no town tax.

What if I live in the City of Glen Cove?  Your school and City taxes are based on an assessment set by the City of Glen Cove.  The County assessment is used for County taxes only.  There is no town tax.

MARKET VALUE AND ASSESSED VALUE

What is market value? The most probable price at which a property would sell if offered for sale under ordinary circumstances. For private homes and Class 1 condominium units, value is usually estimated by comparison with similar homes that have been recently sold. For Class 2 condominiums and cooperatives, value is determined as if the property were operated as a rental apartment building. Appraisers estimate the value of commercial property by considering its rental income potential, sales of similar properties or cost to build.

As of what date is value determined?  January 2 in the year in which the assessment is published. The assessment becomes final in the following year.  If new or expanded improvements are built or if the existing improvements are destroyed during the year, the Department of Assessment will issue a revised assessment.

How is the total assessed value determined? The Department of Assessment estimates the market value of your property and then applies a fractional level of assessment, which is to be uniform for property in the same class.

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. 

Do any limitations apply to other classes of property?  Yes, for Class 2 and 4 properties.  Although there is no restriction on increases of the total assessment any increase not attributable to construction or renovation is subject to a five-year transition assessment.

How is taxable assessed value determined? The Department of Assessment calculates the Class 1 limitation or transition assessment, where applicable, and then deducts any exempt assessed value. The amount remaining is the taxable assessed value, which is used to compute the tax bills. Since some exemptions apply only to school taxes and others only to general taxes, there may be different taxable assessed values for each tax.

How is the exempt value determined?  The Department of Assessment rules on any applications for exemption that you filed by the first business day in January, determines whether to continue exemptions granted in prior years and calculates the amount of the exemption. Many of the state laws granting exemptions provide that the exempt value is adjusted when the total assessed value is increased or decreased. 

LEVEL OF ASSESSMENT

What is the uniform level of assessment? The law requires that taxes be based on each property's market value but allows assessed values to be set at a fraction of market value, provided that the fraction is uniform for each property in the same tax class. The Department of Assessment must state the uniform level used on each assessment roll.  Since 2003, the stated level of assessment has been 1% or less.

Is the uniform level subject to challenge?  Yes.  The Department of Assessment converts the estimated market value into an assessed value by selecting and applying a uniform level for each tax class. In response to challenges filed by taxpayers, the Assessment Review Commission (ARC) may determine that the actual level of assessment is less than that stated by the Department of Assessment. If ARC determines that the actual level is less than that stated by the Department of Assessment, it will apply this finding to all protested assessments for that year and tax class.

Does any other office review the level of assessment?  Yes.  The New York State Office of Real Property Services determines Class Ratios for each tax class after the publication of the final assessment roll. These ratios may be used by taxpayers as evidence of the actual level of assessment achieved on the roll.  However, they are not available until after the time for filing an Application for Correction of Assessment.

Is there a Residential Assessment Ratio for Nassau County? No. This ratio is computed by New York State for each assessing jurisdiction except those, such as Nassau County, that have conducted a revaluation.

Why are the residential levels of assessment so low? Until 2003 the County did not revalue property every year.  Residential (Class 1) assessments were based on 1938 cost levels.  The level of assessment had fallen to about 2% by 2002.  On average a property worth $500,000 was assessed at about $10,000.

Did the low assessments keep taxes low?  No.  The school districts, towns and the County raised tax rates as needed to produce the revenue they required from the property tax.

Why has the residential level of assessment declined further since annual revaluations started?  A court order directed the County to revalue residential property based on the current market and then set assessments at a uniform fraction that would equalize tax burdens across the County and within the school districts, towns and special districts.  By law, this could not be done by raising the level of assessment.  Therefore, in order to comply with the court’s order, the County was required to lower the level for Class 1 for the 2003/04 assessment roll and again for the 2005/06 and 2006/07 rolls.

What happened to the level of assessment for the commercial classes?  Although not required by the court order, the County also revalued the commercial property in 2003 and set assessments at the same 1% uniform level of assessment as was used in that year for residential property.  The Department of Assessment chose to keep the level of assessment unchanged for commercial properties in the 2005/06 and 2006/07 revaluations.  State law allows the total assessment of commercial properties to be increases as much as necessary to reflect full market value but increases in taxable assessed value are subject to a five-year transition assessment.

Did the changes in assessment levels shift taxes from one class of property to another?  No.  The share that each class pays is based on formula set by state law.  Small shifts occur each year based on changes in the classes’ shares of the total market value.  But these shares are not affected by changes in the level of assessment.  An exception affecting the Long Beach school taxes in 2003 was corrected by state legislation in 2004.

Did the lower assessment ratios determined by ARC in some years result in every protested assessment being reduced?  No.  Taxpayers who protest their property’s assessment must establish the market value of the property; they cannot rely on the market value estimated by the Department of Assessment.  Where the evidence shows a greater market value than the Department of Assessment’s estimate the application of a lower ratio may not result in any reduction of the assessment.

What is the practical significance of the level of assessment?  In order to evaluate the accuracy of your property’s assessment you must look at the Department of Assessment’s estimate of market value and compare it to what your own estimate of your property’s market price. You should consider challenging the assessment if the Department of Assessment’s estimate of market value is excessive. If the estimate is substantially less then your property’s actual value, you probably will not be unable to establish the right to a lower assessment even if there are more valuable homes assessed for less.  However, you may be able to establish entitlement to a reduced assessment even if the Department of Assessment’s estimate is accurate for your property if the Department of Assessment has, on average, under-valued property in the same class throughout the County,

TAX CLASSES

What are the tax classes? State law requires the Department of Assessment to designate each property as belonging to one of four tax classes.  Classes 1 and 2 include properties that are used primarily for residential purposes.  Class 3 consists of utility company equipment and special franchises. Class 4 contains all other property, including commercial, industrial and institutional buildings and vacant land.

Why does it matter to which class my property is assigned?  Tax rates are typically much lower for Class 1 than for the other three classes. In most taxing districts the Class 2 tax rate is less than the Class 4 tax rate.

Which properties are in Class 1?  One family homes and two family homes. Class 1 also includes any other properties lawfully and actually used primarily for residential purposes if there are no more than three units on the tax lot.  Residential condominium units in buildings not exceeding 3 stories that were not converted from rental or cooperative use. Vacant land zoned for only residential use.  An extra lot used as part of a home's yard even if zoned for commercial use if it meets certain ownership and size tests. 

Which properties are in Class 2?  Residential rental and cooperative apartment properties and residential units in condominiums that are more than three stories in height or that were converted from rental or cooperative use. Class 2 also includes any other properties lawfully and actually used primarily for residential purposes if there are four or more units on the tax lot.  Assessments of cooperatives and Class 2 condominiums are based on the market value of the property as a whole as if it were operated as a rental.

EXEMPTION AND ABATEMENT BENEFITS

Are there any tax breaks for homeowners? Yes. All resident owners may qualify for the Basic STAR school tax exemption. The Enhanced STAR exemption and other partial exemptions are available based on age, income, disability and military or volunteer service. Contact the Department of Assessment for application procedures if you are newly qualified or did not apply before.

What is the senior abatement? A Nassau County Senior Abatement is automatically applied against your County taxes if you receive the Enhanced STAR exemption; no application is required. The abatement is deducted on your tax bill.

Should I challenge my assessment to get these exemption or abatement benefits? No, unless you have applied for benefits and the Department of Assessment incorrectly denied your application or incorrectly removed benefits previously granted. If you did apply and think you are legally entitled to but were not granted the benefits for which you applied, file a challenge on form AR 3.

How can I find out more information about exemption benefits? Visit the Department of Assessment web site or call 516-571-1500.

CHALLENGING YOUR ASSESSMENT

Quick checklist

I did not receive a disclosure notice from the Assessment Department. Can I still file a challenge with the Assessment Review Commission? Yes.

Can the Assessment Review Commission increase the assessment? No. It will either reduce your assessment or leave it unchanged.

Should I hire a lawyer or other representative? The choice is yours. You are not required to use a representative. Avoid duplicate applications. Do not give authorization to more than one representative for any one roll-year. Make sure you understand the fee agreement.

If I used a representative to challenge my assessment last year, must I use the same representative again this year? No. Your authorization is valid for only one filing. You can use another representative or file for yourself.

What will it cost? Nothing if you represent yourself. The County does not regulate fees charged by tax reduction services.

Will the County contact me if I designate a representative? Not ordinarily. If there is a refund, the Treasurer may mail the refund check to the representative.

I filed last year and have not received a final determination yet.  Should I file again?  Yes, if you disagree with the new assessment.  The assessment for each year is a separate determination.  It takes a full year to review all the challenges.  Final determinations are issued by April of the year after you file your Application for Correction.

Can I challenge the market value estimate? Yes. You may make your own estimate of your property's market value.

Should I challenge my assessment if I own a private home and think the market value estimate is too high? Yes. Review sales of similar houses in your neighborhood to determine what your house would sell for if you put it on the market. The sales should be as recent as possible and not more than two years old. Adjust the sales prices for time so that they reflect what the price would be in January in the year in which the assessment is issued.  The sold houses should be similar to yours in location, size, style, age and amenities. 

What if I own investment or business property? The same principal applies: If the Department of Assessment's market value estimate is too high, your taxes will be too high as well. Appraisers estimate the value of commercial property by considering its rental income potential, sales of similar properties or cost to build.

What if I own a condominium unit? Condominium boards may challenge assessments on behalf of the unit owners. If you own a condominium, you may challenge your unit’s assessment individually but should contact the property management first to avoid filing duplicate applications.

How is market value determined for purposes of a condominium assessment?  Assessments of Class 2 condominiums are based on the market value of the property as a whole as if it were operated as a rental. The total value is allocated among the units according to their value. In Class 1 condominiums, sales prices of units in the same complex are often the best indicator of value.

What if I own a cooperative apartment?  In cooperatives there is only one assessment, which the corporation's board of directors may challenge.  Individual shareholders cannot challenge the assessment. 

Can I challenge the level of assessment? Yes. If you believe that your property is assessed at a higher percentage of its full value than other property in the same tax class on the Nassau County roll, you may claim and provide evidence of a lower level of assessment than that stated by the Department of Assessment.

Can I challenge the assessed value, taxable assessed value or tax class designation? Yes. Even if you agree with the market value estimate, you may challenge the tax class designation, exemption determinations and calculation of assessment limitations or transition assessments. Other grounds for relief include unauthorized entries on the assessment roll or incorrect designation of the tax districts applicable to a parcel. Use form AR 3 for these grounds.

Will the challenge apply to my village or city assessment? No.  If your property is assessed by the City of Long Beach, City of Glen Cove or a village, you may challenge that assessment with the local Board of Assessment Review.  Filing with ARC will not preserve your rights to review of the city or village assessment and the filing dates and procedures are different.

Can I challenge my tax bill at the Assessment Review Commission? No. The tax rates are set by each tax district's budget approval process. The Receiver calculates the tax bill by simply multiplying the rates by the taxable assessed value.

Do I need to know how much my taxes will change before I decide to challenge them? No. If the Assessment Department's assessed value is too high, you may want to challenge the assessment even if you believe your tax bill will go down.

Should I challenge the assessment even though my bank pays the taxes? Yes. If the assessment is too high, the taxes will be too high, but your bank will not challenge the assessment.

Can I challenge a prior year’s assessment?  No.  You can no longer challenge the assessment published in January of last year or prior assessments if you did not file an Application for Correction of Assessment during the filing period for that year.  There was a one-time exception in 2004 for challenging the second year of the revaluation, which was 2004/05 assessment.

Are there any other exceptions on challenging the prior year’s assessment?  Yes. You may challenge the assessment that will become final on April 1 of this year if the Department of Assessment has revised that assessment due to construction or destruction of improvements or a change in eligibility for exemption. The Department of Assessment will send a notice to the owner when this occurs and list the revised assessment on the January tentative assessment roll. You may also challenge the prior year’s assessment if the Department of Assessment should have revised the assessment that will become final in April of this year to reflect a change in eligibility for exemption or destruction of improvements that occurred since January 2 of last year. 

When is the first day that I can file to challenge the new assessment? January 2.

When is the last day to file? March 1.

What happens in years when March 1 falls on a weekend?  You can file on Monday.

What do I need to file a challenge? An Application for Correction of Assessment form.

Which form should I use? There are three application forms: AR 1, AR 2 and AR 3. Use only one. Use form AR 1 if you challenge the value of a 1, 2 or 3 family home, which is used exclusively for residential purposes, or a single Class 1 condominium unit. For all other types of property use form AR 2 for value-only claims.

Which form should I use for vacant land? If the vacant lot is used as part of your home's yard, include the lot on form AR 1. For other vacant land use form AR 2.

If I own more than one lot, must I file a separate form for each? No. File only one form for any lots that are part of a lot grouping, which receives a single tax bill. Also use a single form for multiple units in the same condominium development or for adjacent properties that are used as one, such as store and its parking lot.

What if my challenge relates to classification, exemption, or other aspects of the assessment? File on form AR 3 if you challenge relates to classification, exemption or other non-value issues. AR 3 may include value challenges, as well, but must include a specific non-value claim.  If you file form AR 3, do not also file form AR 1 or AR 2 for the same property.

How should I file the form? Regular mail is best. You may also use express service or deliver by hand. Send it to the Assessment Review Commission at 240 Old Country Road, Mineola, NY 11501. Keep a complete photocopy for your records.

When must my form be mailed? If you mail your form through the postal service or a carrier approved for income tax filings, your form will be timely if it is postmarked by March 1.

When is the latest time for hand delivery? March 1 at 4:45 PM.

Can I get an extension of time to file after March 1? No.

Who can challenge an assessment? Usually the owner or one of the owners if there is more than one. A lessee of an entire property who pays all the taxes is also qualified. A person with a written contract to buy a property may file but will not qualify if the sale does not go though, so it is best to arrange to have the seller file. In unusual cases other persons may qualify.

Who may sign the application form? The owner or other applicant-taxpayer, or a representative who has the applicant's written authorization.

Who may sign an authorization for representation? Only the applicant-taxpayer may authorize an application.

Who can sign for a business entity? A corporate officer, partner, or member or manager of a limited liability company.

How can application be made if the owner has died or is unable to sign? A qualified fiduciary may sign, such as an executor of an estate or a person designated in a notarized power of attorney to manage the affairs of the taxpayer.

How can I find out what information to provide to prove my case? Read the instructions for the application form.

Can I prove my case without knowing how the Department of Assessment valued my property? Yes. The Assessment Review Commission will consider your claimed value and any evidence you can provide to support it. It does not require you to show why the Department of Assessment’s estimate was in error.

Will I receive a response from the Assessment Review Commission? Yes. If you represent yourself, you will receive a written acknowledgement of your application.

Must I appear in person? No. You may make your case through the information you supply with your application.

Will I receive a written determination? Yes.

Who reviews my application? Professional appraisers and other qualified professionals who are members or employees of the Assessment Review Commission.

How long does it take? The Assessment Review Commission works full-time, year round. It reviews applications that it receives by March 1 until March of the following year.  The final determination appears on the final roll, which is published on the fist business day of April.  Notices are mailed at the same time.

If offered a reduction, must I accept it?  If  the Assessment Review Commission sends you a proposed reduction, it may ask you to sign a stipulation accepting offer within a specified time.  Accept the offer unless you plan to seek judicial review of the assessment. 

How can I be sure my acceptance was received and implemented?  Check the final assessment after April 1 on the Department of Assessment website.  The final assessment is published in the year after the tentative assessment.  If you challenged an assessment published in January 2005, look for the reduction on the April 2006 final roll. 

How do I preserve my rights to further review?  If you did not receive or accept a reduction, file a Small Claims proceeding, if you qualify, or a regular judicial proceeding no later than the last business day in April in the year after you filed the Application for Correction.

If I receive a reduction, will I receive a refund of taxes paid? In most cases the reduction will affect future payments only.

If the assessment is reduced, will it stay the same next year?  Probably not.  The Department of Assessment receives notification of the Assessment Review Commission’s determinations and considers them when it sets values for the following year.  However, the Department of Assessment is required to conduct an annual revaluation of all property based on the current market. 

JUDICIAL REVIEW INCLUDING SMALL CLAIMS

Is there another level where I can challenge the determination? Yes. You may start a lawsuit against the County in the State Supreme Court if you do not receive a reduction or do not accept a proposed reduction.

What is Small Claims Assessment Review? SCAR is an optional form of judicial review, which most homeowners may pursue on their own, without an attorney. Judicial review is available only if you applied to the Assessment Review Commission and did not accept a reduction.

Which properties qualify for Small Claims review? You qualify for Small Claims review if you own and reside in a one, two or three family home or Class 1 condominium unit that is used exclusively for residential purposes. Property used in part for commercial purposes and vacant lots do not qualify. 

Are there restrictions on the relief requested in Small Claims?  You may not claim a reduction greater than that requested in your Application for Correction and the requested reduction may not be greater than 25%.  You cannot request a change in the property’s tax class designation or the calculation of the limits on annual assessment increases.

Is there a form for Small Claims review? Yes. Petition forms are available from the office of the County Clerk.

Is there a form for regular judicial proceedings?  There is no official petition form. Only lawyers can prepare petitions for others and use of a lawyer is required if the property is owned by a corporation.

Can County employees help me fill out papers for judicial review?  No.