As 2021 yields to a new (and hopefully better) year, it’s time to look ahead to 2022 with an eye to identifying important deadlines ahead for you on the property tax front, and also comment on some developments that happened in 2021 that will likely impact the property tax picture in Nassau County. Before turning to 2022, let’s review the relevant developments that happened this past year.
New County Executive Elected
A new County Executive, Republican Bruce Blakeman, was elected in November and will assume his new position in January 2022. Blakeman has called for an audit of Nassau County’s Department of Assessment, stating to Newsday that “If they come back to me in six months and tell me we need to do a whole new reassessment, then obviously that’s something that I would strongly consider. But I’m hoping that’s not necessary. I’m hoping that we can come up with a solution that would be less complex.” It is not known at this point whether Blakeman will extend 2022 grievance filing deadlines, which in 2020 and 2021 were extended beyond the traditional March 1 deadline due to the pandemic. Expect additional details about these and other plans to emerge from his office in the New Year.
Nassau County Budget Crisis Easing
Nassau County’s finances are in reasonably good shape right now. The County received $193 million in aid from the American Rescue Plan, with another $193 million due in 2022. An additional $221 million came from New York State in 2021, with another $225 million due next year. These funds effectively plugged the gaping $749 million hole in the County’s budget caused by lost tax sales revenues due to the pandemic. Property tax revenue for Fiscal Year 2022 is projected at $755 million, a reduction of $70 million over Fiscal Year 2021, due to the RPIA phase-in of property tax increases over a 5-year period (property tax revenue accounts for about 21 percent of Nassau County’s $3.5 billion budget).
NYS Property Tax Increase Cap Will Remain at 2 Percent
In July, NYS Comptroller Thomas DeNapoli announced that statewide property tax levy increases will be capped at 2 percent. The cap limits annual tax levy increases to the lesser of the rate of inflation or 2% with certain exceptions, including a provision that allows municipalities to override the tax cap. Given that inflation is a growing concern these days, it’s a bit comforting to know that collective property taxes will at least be capped below the expected inflation rate.
New NYS Property Tax Credit Now Law
A new Real Property Tax Relief Credit – designed to help homeowners making less than $250K per year – was made a part of the 2022 New York State budget. The credit comes into play if a resident homeowner’s property tax bill exceeds a fixed percentage of the taxpayer’s federal adjusted gross income. Qualified homeowners will be able to claim this new credit for taxable years 2021, 2022, and 2023 when they file their 2022 tax returns.
What’s Ahead in 2022
A lot will be happening in January. On January 1st, the County’s Department of Assessment will release the 2023/24 tentative tax assessments. Also on that date, the County will issue 1st half 2022 General Tax bills.
January 3rd is also a significant date as it’s the first day that grievances can be filed to challenge 2023/24 property tax assessments. Our advice to you is to let Maidenbaum handle your grievance; letting us do the heavy lifting will do two things: first, it will let you relax because we’ll handle everything, and second, it will give you the assurance that you’ll have the leader by your side zealously representing your best interest.
Also on January 3rd, the deadline for filing exemption applications for STAR (School Tax Relief) and Enhanced STAR occurs, along with the remaining potential exemptions. Our advice is to focus now on making sure all your documents are in order. For a detailed discussion of what these exemptions are, whether you qualify, and how to proceed if you do, please read our article on the topic here:
https://www.maidenbaumtax.com/blog/dont-miss-the-nassau-county-property-tax-exemption-deadline/. For more information on the STAR/Enhanced STAR programs, call the NYS Dept. of Taxation and Finance at 518-457-2036.
If you’re already a Maidenbaum client, you may also be hearing from us in January with a communication concerning your 2021/22 property taxes; specifically a bill for our services related to the reduction we obtained on your behalf.
Maidenbaum wishes you the very best this Holiday Season and for the New Year ahead!