Property Tax Alert | Farrell Fritz, PC

Business phases
Any increase in commercial assessment not related to new construction must be staggered over the next 5 years at the rate of 20% per year. As we enter the 3rd year since the 2020/21 countywide reassessment, a reminder, that if your assessed value this year (2022/23) is greater than your assessed value for 2019/20, 2020/21 or 2021/22, you should check your tax bills to make sure your 2022/23 assessed value is less than the total 2022/23 assessed value.

Gradual implementation of residential TPP
The intent of the “Taxpayer Protection Plan (TPP)” program included in the 2020/21 countywide reassessment was to help homeowners facing large assessment increases by gradually increasing taxes over five years. . The unfortunate byproduct of the TPP has been smaller tax cuts for those who received an assessment reduction. As the TPP benefits that began in 2020/21 continue to run out, homeowners with large assessment increases (from 2019/20 to 2020/21) will most likely see large tax increases in 2022/23 (TPP – year 3). Even if a reduction in assessment does not completely halt a tax increase due to the phasing in of the TPP, it can still lessen its impact.

HIEX – The Home Improvement Exemption
Beginning with the 2021/22 tax year in Nassau County, a new law has been passed providing for an 8-year phase-in of taxes for newly constructed homes (HIEX). The exemption applies to a maximum of $750,000 of a home’s total market value and gives owners of new homes the option to spread their first appraisal over an eight-year period, and owners with renovations important to gradually increase the valuation over the same period.

Court of Appeal reaffirms the right of non-property commercial tenants to challenge property tax assessments
In DCH Auto v. Town of Mamaroneck, et al., New York State’s highest court reinstated the generally accepted principle that a tenant obligated to pay property tax under a net lease has the right to challenge assessments placed on the leased property. property even if it leases, not owns, the property. Commercial landlords should ensure their leases clearly state which party has the right to file, and tenants should review their lease to ensure they are allowed to dispute property tax assessments.

You can always upgrade from a non-rising star
If your income is greater than $250,000 and less than or equal to $500,000 and you are currently on the basic STAR exemption, you will now automatically receive a check for STAR credit instead of a discount on your bill. school taxes. No need to change.

If your income is $250,000 or less and you currently qualify for the STAR exemption, you can choose to enroll in STAR credit to receive a check instead; you may receive a greater benefit and your savings will never be less than the STAR exemption benefit. The value of STAR credit savings can increase up to 2% each year, but the value of STAR exemption savings cannot increase. For 2021, the STAR credit was between 2% and 6% higher than the STAR exemption.

A word of warning, if your bank is paying your taxes through mortgage escrow, the initial change will create an escrow deficit. Your tax bills will increase by the amount of the STAR, but you will receive a check from New York State for that amount.

To upgrade to STAR credit, click here.

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