How high is your new school tax bill too high?

NASSAU COUNTY CIVIC ASSOCIATION, INC.

"The government is us, we are the government, you and I." Teddy Roosevelt

October 25, 2003

How high is your new school tax bill, too high?

Welcome to the education of hard knocks.

Nassau county residents have recently been receiving their new school tax bills. It seems that there is confusion. Its called shock and awe. How did this happen? What did we do to deserve this? Is there more on the way? No, its not possible. Nassau's mess has been fixed, we're turning the corner or so they said. Welcome to the education of hard knocks.

Back in the eighties, the County of Nassau decided to re-assess all commercial property in the County of Nassau. As the property values are based on the cost of construction in 1938 dollars and 1960's, it was apparent that it was unfair and did not adequately reflect the true market value of commercial properties. As it was a boom time in the economy and stock market, the re-assessment determined that these properties were worth a lot more based on the robust economy. Unfortunately, the bottom fell out when the stock market crashed in October 1987. Many of the commercial entities decided to grieve their taxes through the filing of a tax certiorari claim. As their property value decreased due to the current market conditions, they were awarded a refund of their taxes for the year in which they filed.

In Nassau County, the County government is responsible for approximately 20-25% of the taxes, the towns are responsible 15-20% and the remainder, approximately 60% is for your schools. The problem that the county encountered was that they were required to refund the entire amount of the over payment even though they were only responsible for 20-25%. This created a large and growing debt. The prior administration as well as the legislature (it came into being in 1995 after the board of supervisors was declared unconstitutional), failed to address this problem. At the same time, a suit was filed by the American Civil Liberties Union and joined by the Department of Justice's Civil Right's division under the Clinton Administration. Both alleged that the county engaged in racial discrimination based on the manner the county valuated properties which disproportionately impacted minority homeowners. Whether it did or not, the system was unfair in general as the valuation was based on cost of construction in 1938 rather than the current market value. As the county was unable to defend an unfair system and had no resources to do so, the county settled. The County agreed to re-assess all four property classes in Nassau County; homeowners, multiple-dwelling owners, businesses, and utilities. All four classes have separate school tax rates.

The re-assessment was completed by Colle-Layer-Trumble company in 2002 with tax valuations finalized for the year 2003 assessment roll. The cities and villages of Nassau can set their own assessments for their taxes, however most use the county assessment figures.

It should be noted that the Nassau County Department of Assessment does not set tax rates, collect taxes or set budgets. That is the discretion of the legislature, school districts and other taxing authorities. There are several exemptions; veterans, senior citizen, disable persons and under the New York State School Tax Relief Program (Star). If you disagree with your tax rate as noted previously, a tax certiorari claim can be filed with the Department of Assessment in January. Please contact the Department of Assessment for more detailed information.

The sales pitch by our legislature was that one third of homeowner's assessments would go up, one third would go down and one third would remain the same. What do you think? This shock and awe should not be a surprise. A County tax increase was passed by the legislature by a party line vote in 2002. We were told that this was needed to fix Nassau's mess. We were promised that the average tax increase would be $200 to $250 per homeowner based on the old valuation system. However, the legislature failed to take the following variables into consideration; the new resulting assessed values, how the new assessed values would effect the increase in property taxes, the increase in school taxes, city and village taxes and the cumulative tax burden combined.

Wait, there is more on the way. Your property tax bills will be sent out after the November elections. Can there be more? Of course! The county legislature is considering an increase in the sales tax. If the state legislature rejects this idea, there is a proposal to enact a residential energy tax on oil and natural gas used to heat your home. This is part of the proposed county budget. This sounds like a tax increase for 2004. I guess this is an example of honest government that promised no new tax increases for 2004.

Are we to blame? Absolute power corrupts absolutely. When you relinquish your authority as a citizen by failing to vote and participate, you concede all power to the politician. The politician supports special interests over your interests, the need to remain in power is what drives them. Their ability to manipulate and provide for you is their ploy, their truth is subjective and is based on moral relativism. Where are the statesman and women? We need representation not politics as usual. Take a stand for your liberty while your still able to afford it. Remember to vote on Tuesday, November 4, 2003.