1 Nassau County Department of Assessment Unfair School Property Tax System Is It Time for an Income...

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Nassau CountyNassau CountyDepartment of AssessmentDepartment of Assessment

Unfair School Property Tax SystemUnfair School Property Tax SystemIs It Time for an Income Tax?Is It Time for an Income Tax?

Presented ByPresented ByHarvey B. LevinsonHarvey B. Levinson

Chairman, Board of AssessorsChairman, Board of AssessorsJuly 2007July 2007

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Great Ideas – Three StagesGreat Ideas – Three Stages

All great ideas go through three stages:

• Stage One – They are ridiculed

• Stage Two – They are strongly opposed

• Stage Three – They are considered to be self-evident

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Ability to PayAbility to Pay

“The assessed value of a home is not an indicator of a family’s ability to pay school taxes. We have to explore alternatives to providing school district funding to help families on Long Island who find themselves ‘house rich and cash poor’ and struggle to pay their property taxes.”

Harvey B. LevinsonChairman, Nassau County Board of Assessors

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$1,152.85 $1,152.82

Levittown Hicksville

COUNTY-WIDE PROPERTY TAXES *Homes valued at $375,000

Levittown & HicksvilleLevittown & Hicksville

* Excluding Sewer Taxes

Homes with the same value pay the same taxes, but only for the Nassau County portion of the taxes, which is approximately 15% of the total property tax bill.

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SCHOOL BUDGET LEVIES 2006-2007SCHOOL BUDGET LEVIES 2006-2007

• Total raised by School Budget Levies in the 2006-2007 year is $3.47 billion

• Presently, two-thirds of the levy is paid by residential homeowners, and one-third is paid by commercial tax base

• In 2006-2007, New York State gave Nassau County over $357 million in STAR reimbursements

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School Tax DisparitySchool Tax Disparity

Homes with the same Market Value pay widely

different school taxes• The following slides illustrate examples of

the disparity between districts

• Tax rates on all parcels are per $100 of Assessed Value

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Levittown and Island TreesLevittown and Island Trees

Levittown$5,958

Island Trees$4,453

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2006-2007 SCHOOL TAX Bill ComparisonHome Value $400,000, Includes Basic STAR Exemption

Levittown pays $1,505 more!

Tax Rate$735

Tax Rate$553

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Baldwin$6,228 Oceanside

$4,950

$ -

$ 1,000

$ 2,000

$ 3,000

$ 4,000

$ 5,000

$ 6,000

$ 7,000

2006-2007 School Tax Bill ComparisonHome Value $450,000, Includes Basic STAR Exemption

Baldwin, Oceanside and Long Baldwin, Oceanside and Long BeachBeach

Baldwin pays $1,278 more than Oceanside and $2,908 more than Long Beach!

Tax Rate$667

Tax Rate$525

Tax Rate$360

Long Beach$3,320

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Westbury$6,982

Carle Place$4,946

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2006-2007 SCHOOL TAX Bill ComparisonHome Value $500,000, Includes Basic STAR Exemption

Westbury and Carle PlaceWestbury and Carle Place

Westbury pays $2,036 more!

Tax Rate$673

Tax Rate$466

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Hewlett-Woodmere

$15,463

Lawrence$8,838

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2006-2007 SCHOOL TAX Bill ComparisonHome Value $1,000,000, Includes Basic STAR Exemption

Hewlett-Woodmere and LawrenceHewlett-Woodmere and Lawrence

Hewlett-Woodmere pays $6,625 more!

Tax Rate$667

Tax Rate$382

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Roslyn$14,381

Port Washington

$10,826 Manhasset $7,864

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2006-2007 SCHOOL TAX Bill ComparisonHome Value $1,100,000, Includes Basic STAR Exemption

Roslyn, Port Washington & Roslyn, Port Washington & ManhassetManhasset

Roslyn pays $3,555 more than Port Washington and $6,517 more than Manhasset!

Tax Rate$558

Tax Rate$421

Tax Rate$307

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Text

$5,4

33

$5,4

59

$5,7

29

$6,2

73

$6,4

47

$6,5

10

$6,6

54

$6,7

87

Suffolk County – Town of HuntingtonSuffolk County – Town of Huntington

School and Library Tax (includes Basic STAR)

Average Home Value $577,000

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School District Income Tax ProposalSchool District Income Tax Proposal

All commercial and utility property, traditional apartment buildings (4 or more units), and non-residents would continue to pay property taxes.

Each school district would have the same income tax rate.

Establish a “floor and ceiling” cap on the residential income levels to be taxed.

Eliminate the residential portion of the school property tax and replace it with a modest income tax to be paid by the owners of one, two and three-family homes, condominiums and co-ops, as well as renters. County and town budgets would continue to be funded by the property tax.

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School District Income Tax ProposalSchool District Income Tax Proposal (cont.)(cont.)

School districts where income tax revenue raised exceeds budgetary needs can be placed in a special reserve account so that all income tax revenue raised in a school district stays within the school district.

Share the commercial property tax base throughout the County with all school districts.

• Since the residential portion of the school property tax would be eliminated, the total State authorization for STAR would be reclassified and used as in income tax supplement. School districts where revenue raised through the income tax would not be enough to fund its budgetary needs would receive additional State aid and STAR money credits.

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Advantages of a ResidentialAdvantages of a ResidentialSchool District Income TaxSchool District Income Tax

Homeowners will be able to make improvements to their homes without increasing their share of school taxes.

Residential property tax certiorari will all but be eliminated – reducing the amount of debt incurred by the County due to successful assessment challenges.

Millions of dollars will be saved in the cost of administering the STAR program and defending assessments.

Homeowners will be less inclined to illegally rent out rooms to pay their property taxes.

Homeowners will pay school taxes based on their ability to pay.

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