On November 1, 2020, the 2020/21 school tax bills were mailed to owners across Nassau County. These were the first tax invoices to be based on the eagerly awaited “Revaluation of the Nassau District”. The reassessment was the first nationwide reassessment in nearly a decade. For the 2011/12 fiscal year through 2019/20, real estate tax assessments were based on a “frozen roll” in Nassau County. While property tax assessments could change due to assessment issues and the building and destruction of improvements, Nassau County did not update its property tax assessments to reflect the ebb and flow of the property market.
As a result, the 2020/21 school tax was not only a source of great anticipation and fear, but was also seen as a pioneer in commercial property taxes for years to come. So what did we learn from the recently issued tax bills? Unfortunately, the answer is that we haven’t learned enough. While there are property owners for whom the tax burden has changed dramatically as a result of the revaluation, the effects of the revaluation are not yet fully felt. This is due to state and local laws that require reassessment to be gradual over a 5 year period. As a result, while the 2020/21 school tax bills offer some insight into what to expect, they don’t give a complete picture for owners. In the next five years, things will change, in some significant ways, for homeowners as the revaluation is “incremental”.
Given the uncertainty that remains about the full impact of the revaluation, it is more important than ever for property owners to speak with a tax certification attorney to ensure they are taking all necessary steps to minimize their commercial property tax burden.
Robert Renda is a tax advisor and real estate attorney with Forchelli Deegan Terrana LLP in Uniondale, NY