Owners of new or extensively renovated Nassau County homes could revalue up to $ 750,000 over an eight year period under a tax break bill passed into state law this week.
Nassau’s first statewide re-rating in a decade allows homeowners to roll up or down rating changes over a five-year period.
However, the exemption did not apply to new houses or those with major renovations as the properties were essentially being valued for the first time.
These homeowners had to pay for their valued valuations immediately, while most properties were allowed to pick up their new values over a five year period.
Many owners of newly built houses or those with extensive renovation work complained about exorbitant tax burdens.
They said they would bear a disproportionate share of the property tax burden because so many other properties had received the phase-in exemption.
“This bill protects taxpayers and encourages both new construction and job growth during this much-needed recovery from the coronavirus pandemic,” said Laura Curran, chief executive officer of Nassau County, in a statement.
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Newsday reported in February that some residents who bought new homes in condos like Roslyn Landing in Roslyn Village were stunned to receive tax bills of $ 40,000, or $ 50,000, for the 2020-21 tax year.
Conal Denion, special adviser for Nassau County, said homeowners who had high tax charges would be eligible for the exemption in the fall.
According to district officials, 1,129 properties received no phase-in due to the completely new construction, while 13,088 properties received a partial phase-in phase because they had less extensive new construction.
Assemb. Chuck Lavine (D-Glen Cove) and Senator Kevin Thomas (D-Levittown) endorsed state legislation passed this week as part of the 2021-22 state budget.
Governor Andrew M. Cuomo has yet to sign the bill.
Thomas said the Nassau phase-in measure will “help create justice and ease the burden on homeowners during these exceptionally challenging times.”
Nassau County Legis. Arnold Drucker (D-Plainview), who helped draft the state legislation, said extending the exemption to new buildings would “make the tax system fair”.
He said, “Seniors who were downsizing and moving into a townhouse or condo didn’t want to pay double taxes. This species makes up for that.”
The approval of legislation in the Democrat-controlled Assembly and Senate was a major victory for Curran, a Democrat who is standing for re-election in November.
Curran has been commended for performing the first revaluation in nearly a decade, resetting home values after a ten-year freeze.
However, it has received criticism on the subject of new construction.
Homeowners said they bought homes or started major renovations before they knew a statewide reassessment was going on or that a phase-in-phase would be done.
Michael Dubb, founder and executive director of the Beechwood Organization, which powers Country Pointe and other developments, said, “We were confident that the unintended consequences of the flawed law would be corrected.”
Dubb praised Curran and the county and state lawmakers for addressing the inequalities of the law.
“We are pleased that future property taxes will be fair to all homeowners across Nassau County and that seniors who buy newly constructed homes in Nassau County can now stay in Nassau County,” Dubb said in a statement.
District officials said they hope the new build exception, which applies only to Nassau, would encourage a housing construction outbreak.
According to state legislation, the new building must be completed in time for the tax year 2024-25 in order to be eligible for the 8-year phase-in-phase.
Legislation will go under in 2026.
Scott Eidler reports on Nassau County’s government and politics for Newsday. Scott has been with Newsday since 2012 and was previously responsible for local government and education.